SUSTAINABILITY REPORT 2014
BMW BRILLIANCE AUTOMOTIVE LTD.
PREFACE
At BMW Brilliance, we see sustainability as an integral part of our long-term business
commitment in China.
Becoming the most sustainable and responsible premium automotive manufacturer in
China is the core tenet of our business strategy. It is my conviction that sustainability is
key to achieving our goals and realising our full potential in the Chinese market.
We joined the UN Global Compact in 2014 – committing to aligning our operations and
strategies to the ten universally accepted principles in the areas of human rights,
labour, environment and anticorruption. Today, we have integrated sustainability
throughout our entire value chain, with equal emphasis on economic development,
environmental protection and social contribution.
We have taken the necessary steps to meet the challenges of today and tomorrow. As
a result of the BMW Group Efficient Dynamics strategy, the energy requirements and
CO2 emissions of each of our models are being continuously reduced. The electric
ZINORO 1E and the new plug-in hybrid version of the BMW 5 Series contribute to the
further electrification of our fleet. In 2014, we reduced our fleet fuel consumption to
7.06 litres per 100 kilometres. This positions us as number one in the national ranking
of the fleet fuel consumption achievement rate among all local manufacturers.
Today, we are one of the most attractive employers in the automotive industry. This is
a core competitive advantage and helps sustain our business success. In 2014, we
intensified our employee development programme to 3.4 days of training per BMW
Brilliance employee.
Since 2012, we almost doubled our production and significantly increased our employee
headcount. The one millionth BMW vehicle produced in China represents another
significant milestone for BMW Brilliance. After only 12 years, BMW Brilliance has become
one of the leading premium car manufacturers in China.
To drive our success, we are convinced that we need to invest in sustainable
innovations and deliver sustainable mobility solutions. The BMW Brilliance
Research and Development Centre provides great potential for innovative mobility
solutions, including new electric vehicles and vehicle connectivity. To seize the
opportunities ahead, we actively engage with our suppliers and our dealers. Both
are key business partners for our future success. We will continue our intensive
cooperation with suppliers and dealers to develop sustainable solutions.
We see our commitment to sustainability as an investment in the future of our company
and a contribution to social innovation at the same time. Our 2014 Sustainability Report
upholds this commitment and provides our stakeholders with an overview of the
progress we have made on our sustainability issues, activities and our goals.
Olaf Kastner
President and CEO
BMW Brilliance Automotive Ltd.
CONTENTS
INTRODUCTION
Preface
1
Our point of view
4
An overview of BMW Brilliance
6
1.
SUSTAINABILITY MANAGEMENT
1.1 Our management approach
1.2 Stakeholder engagement
1.3 Anti-corruption and compliance
PRODUCT RESPONSIBILITY
15
24
30
3.
2
Our management approach
Energy consumption and emissions
Waste reduction
Water
2.1
2.2
2.3
2.4
Our management approach
Product safety
Customer satisfaction
Efficient mobility
43
46
50
54
4.1 Our management approach
4.2 Minimising supplier risk
4.3 Utilising supplier opportunities
5.1
5.2
5.3
5.4
Our management approach
Attractive employer
Occupational health and safety
Training and further education
CORPORATE CITIZENSHIP
99
104
110
114
6.1 Our management approach
6.2 Corporate citizenship
123
126
7.
SUPPLIER MANAGEMENT
63
66
72
76
6.
EMPLOYEES
4.
ENVIRONMENTAL PROTECTION
3.1
3.2
3.3
3.4
5.
2.
APPENDIX
81
88
94
7.1 About this report
7.2 UN Global Compact Index
7.3 GRI Content Index
134
136
146
3
OUR POINT OF VIEW
SUSTAINABILITY REPORT 2014
OUR POINT OF VIEW
Dr. Anton Heiss
Senior Vice President, Technology and Manufacturing
Considering global resource shortages and limited environmental capacity, our vision of
sustainable mobility is becoming even more imperative to achieving business success. As a
result of the Efficient Dynamics strategy of the BMW Group, we are continuously improving
the efficiency of our products and introducing vehicles with electric drivetrains in our model
range. The start-up of production for the BMW 530Le plug-in hybrid electric vehicle in 2014
at our Dadong plant is an important milestone in the implementation of this strategy. And,
with the introduction of our Clean Production approach, we are continuously improving the
resource efficiency and lowering the emissions of our production plants.
Lei Xiaoyang
Senior Vice President, Finance
We define our sustainability strategies by considering BMW Brilliance’s social and ecological
performance, as well as our profitability. Sustainability activities make an important contribution
to the value we create as a company. We are investing in research and development in order to
develop innovative solutions for sustainable mobility, which is important for our business. At the
same time, our investments in the efficiency of our production plants reduce our energy and
disposal costs in the medium term.
4
Jochen Goller
Senior Vice President, Sales and Marketing
Our customers are at the heart of everything we do. We aim to create a perfect “customer
journey” with each customer interaction. Customer expectations are constantly evolving
and changing. As a result, we continue to expand and enhance our sales and service
network. In our new ZINORO showrooms, we promote innovative approaches to electric
mobility in the Chinese market. With the expansion of the 5S dealers’ model in China, we
integrate sustainability criteria into the premium services we offer to our customers.
Olaf Kastner
President and CEO, Senior Vice President, acting Human Resources
A company is only as good as its employees. Their expertise is our most precious
resource. Therefore it is important we attract and retain the best employees. Our record
of sustainability engagement positions us as one of the most attractive employers. We
offer our employees a variety of benefits and development opportunities that are tailored
to their individual strengths. As we prepare for Industry 4.0, our training requirements
further increase. We need employees with the ability to manage highly complex processes.
Our advanced training programmes assure we keep pace with the technological advancements
and allow us to implement components of the “Smart Factory” already today. This is an
indispensable investment in BMW Brilliance’s future success.
5
AN OVERVIEW OF BMW BRILLIANCE
SUSTAINABILITY REPORT 2014
AN OVERVIEW OF
BMW BRILLIANCE
PRODUCTION AND SALES as of 31 December 2014.
2
460
1
COMPLETE VEHICLE PLANTS AND
4
3
OUR HISTORY
OUR PRESENT
WE ARE THE LEADING PROVIDER OF PREMIUM VEHICLES AND
SERVICES IN CHINA.
OUR VISION
6
WE SUSTAINABLY DELIVER A PREMIUM CUSTOMER EXPERIENCE
THROUGH DESIRABLE PRODUCTS AND SERVICES, PASSIONATE
ASSOCIATES AND COMMITTED PARTNERS.
AUTHORISED DEALER OUTLETS NATIONWIDE
PARTS DISTRIBUTION CENTRES
BMW TRAINING CENTRES
15
2003: FOUNDING OF THE COMPANY, A JOINT VENTURE OF THE
FINAL PARENT COMPANIES OF BAYERISCHE MOTOREN
WERKE AKTIENGESELLSCHAFT AND BRILLIANCE CHINA
AUTOMOTIVE HOLDINGS LIMITED.
ENGINE PLANT
TRAINING BASES AND
11
TRAINING SITES
AN OVERVIEW OF BMW BRILLIANCE
SUSTAINABILITY REPORT 2014
OUR PRODUCTS
BMW 5 SERIES LONG WHEELBASE
BMW 3 SERIES LONG WHEELBASE
BMW 3 SERIES STANDARD WHEELBASE
BMW X1
ZINORO 1E
BMW N20, 4-CYLINDER ENGINE
EMPLOYEES
8
AUTOMOBILES
PRODUCED
—— units
AUTOMOBILES
DELIVERED
—— units
2014
15,257
2014
287,780
2014
278,637
2013
13,024
2013
214,978
2013
206,729
Founded in May 2003, BMW Brilliance Automotive Ltd. is a
joint venture of the final parent companies Bayerische
Motoren Werke Aktiengesellschaft and Brilliance China
Automotive Holdings Limited. Its operations include the
production, sales and aftersales services of BMW and
ZINORO automobiles. Situated in Shenyang, Liaoning
Province, BMW Brilliance has over 15,000 employees and
a nationwide sales and service network. By the end of
2014, BMW Brilliance had a total of 460 sales and service
outlets nationwide, four BMW parts distribution centres,
three BMW training centres, 15 training bases and 11
training sites. We are continuously adding electrically
powered and plug-in hybrid cars to our model range. This
allows us to contribute directly to China’s national target of
reducing industrial average fuel consumption to 6.9 litres of
petrol per 100 kilometres by 2015. In 2014, BMW
Brilliance’s Corporate Average Fuel Consumption (CAFC)
was 7.06 litres of petrol per 100 kilometres (2013: 7.3 litres
per 100 kilometres). This positions us as number one in
the national ranking of the fleet fuel consumption
achievement rate among 88 local manufacturers,
according to the 2014 Corporate Average Fuel
Consumption report of the Chinese authorities. The
joint venture contract between BMW AG and Brilliance
China Automotive Holdings Limited was successfully
extended until 2028, which underscores the harmonious
collaboration between the shareholders and BMW
Brilliance’s commitment to the future.
9
AN OVERVIEW OF BMW BRILLIANCE
SUSTAINABILITY REPORT 2014
Key performance indicators (KPI)
2013
2014
Change to
previous year %
2013
2014
Change to
previous year %
13,024
15,257
17.1%
Employees
BMW Brilliance activities
Automobiles produced (units)
214,978
287,780
33.9%
Workforce at the end of the year
Automobiles delivered (units)
206,729
278,637
34.8%
Attrition rate (% of workforce)
6.8%
6.8%
0%
Number of dealers
420
460
9.5%
12%
12%
0%
Thereof dealers with 5S certification
30
35
16.7%
Percentage of women in total
workforce (in %)
Average days of further training
per employee
3.2
3.4
6.3%
Accident frequency rate
(per one million hours worked)
0.92
0.82
-10.9%
Number of employees and
customers that participated in Warm Heart Fund activities
50,000
65,000
30.0%
Number of people benefiting from
Warm Heart Fund activities
70,000
91,000
30.0%
Product responsibility
CO2 emissions of
BMW Brilliance automobiles (in g/km)
174
168
-3.4%
Fleet fuel consumption
(in l/100 km)
7.30
7.06
-3.4%
Environmental protection
Energy consumption per
vehicle produced (in MWh/vehicle)
2.06
1.67
-18.9%
CO2 emissions per
vehicle produced (in t/vehicle)
1.10
0.97
-11.8%
Water consumption per
vehicle produced (in m3/vehicle)
2.72
2.18
-19.9%
Process wastewater per
vehicle produced (in m3/vehicle)
0.50
0.47
-6.0%
Waste for disposal per
vehicle produced (in kg/vehicle)
4.41
5.67
28.6%
Volatile organic compounds (VOC) per
vehicle produced (in kg/vehicle)
3.52
0.48
-86.4%
17.9
23.9
33.5%
Corporate Citizenship
Suppliers
Purchasing volume in China
(in billion RMB)
10
11
01
SUSTAINABILITY
MANAGEMENT
1.1 Our management approach p. 15
1.2 Stakeholder engagement p. 24
1.3 Anti-corruption and compliance p. 30
OUR MANAGEMENT APPROACH
SUSTAINABILITY MANAGEMENT
How relevant is BMW Brilliance for the BMW Group?
BMW Brilliance has a key role in the business model of the BMW Group. China is the largest single market within
the BMW Group. The pace of expansion in China has been rapid. In only 12 years, BMW Brilliance grew to 15,000
employees and will celebrate its one-millionth roll-off in 2015.
What are the most important sustainability challenges for BMW Brilliance?
As our business in China grows, BMW Brilliance faces complex challenges. Urbanisation and a growing
1
SUSTAINABILITY
MANAGEMENT
middle class present not only business opportunities, but also the need for solutions to cope with social
and environmental impacts, particularly in large cities. Finding sustainable and profitable solutions in this
context is one of the most important challenges we face today.
What are the most important sustainability milestones for BMW Brilliance?
BMW Brilliance launched the joint-venture-owned brand ZINORO in 2013, a pure electric vehicle, and
began producing the new plug-in hybrid version of the BMW 5 Series in 2014. Both contribute to reducing
the fuel consumption and air emissions of the vehicle fleet and consequently to sustainable mobility. The
continuous development of sustainable products is key to further driving BMW Brilliance’s success.
1.1 Our management approach
Sustainability management is an investment in our future success and long-term viability. Our business success is
Ursula Mathar
Vice President Sustainability and Environmental Protection, BMW Group
measured by financial indicators, the level of integration into society and our environmental impacts. Managing our
social and environmental responsibility is integral to the way we do business. We are convinced that the lasting
economic success of any enterprise will be based increasingly on acting responsibly. We believe future leaders of
our industry will be manufacturers who integrate sustainability throughout their value creation chain.
As a member of the UN Global Compact Initiative, we are committed to
its ten principles as well as to the principles of fundamental rights as
set out in the ILO’s “Declaration on Fundamental Principles and Rights
of Work”. We strive to protect human rights related to our employees,
suppliers, business partners and the communities in which we live and
work. We use targeted dialogue with our stakeholders to gain various
perspectives and input on strategically relevant topics. This also
enhances the acceptance of our activities and decision-making. Our
compliance policies apply to all management procedures. These
policies provide guidance to our employees on all compliance-related
enquiries.
14
15
OUR MANAGEMENT APPROACH
SUSTAINABILITY MANAGEMENT
OUR VISION AND GOALS
Ten principles of the UN Global Compact
The BMW Brilliance Automotive Ltd. Sustainability Report 2014 documents our progress
toward achieving the ten principles of the UN Global Compact, which are:
Human rights
Businesses should support and respect the protection of internationally proclaimed human rights; and
make sure there is no complicity in human rights abuses.
Labour
Businesses should uphold the freedom of association and recognition of the right to collective
bargaining;
eliminate all forms of forced and compulsory labour;
effectively abolish child labour; and
eliminate any discrimination in respect of employment and occupation.
Environment
Businesses should support a precautionary approach to environmental challenges;
In 2014 the Board of Management reviewed BMW Brilliance’s corporate strategy and set a clear direction for our
company to move forward with our new vision and goals.
Vision:
BMW Brilliance sustainably delivers a premium customer experience through desirable products and services, passionate
associates and committed partners.
Goals:
The acronyms of our goals form the word “STARS”, making it emotionally inspiring and easy to remember:
Satisfaction
We deliver personalised services to customers and dealers, achieving the highest customer and dealer satisfaction. By
providing personalised and value-added services, we aim to redefine premium standards in China and maintain our position
as the most recognised premium brand.
Top quality
We manage growth and complexity, delivering everything with top quality, especially our products and services. We will
deliver the right car, to the right customer, at the right time and with the right quality by applying “zero defect” value chain
process management.
undertake initiatives to promote greater environmental responsibility; and
encourage the development and diffusion of environmentally friendly technologies.
Anti-corruption
Businesses should work against corruption in all forms, including extortion and bribery.
Associates
We develop our people, organisation and enablers, ensuring we have the competencies for future growth. We believe that
this is the foundation to achieving our 5 STARS goals and realising our vision.
www.unglobalcompact.org
Return
We grow together with our shareholders and partners, generating returns on investments. Only through strong collaboration
and cooperation with our dealers, suppliers and government partners can we be successful and create a rewarding
environment for all.
Sustainability
We build an innovative and sustainable business in China with a long-term mindset. With constant investment in green
production and logistics, local research and development, ZINORO brand implementation, as well as various corporate social
responsibility activities, we are committed to driving the sustainable development of our company and society in China.
16
17
OUR MANAGEMENT APPROACH
SUSTAINABILITY MANAGEMENT
VISION AND GOALS OF BMW BRILLIANCE
Our sustainability efforts encompass our entire value chain. We aim to enhance our image
as the most sustainable and innovative premium brand in China by delivering efficient
products, developing new energy vehicles, and ensuring sustainable production, as well
as the sustainability of our 5S dealerships.
VISION
BMW Brilliance sustainably delivers a premium customer
experience through desirable products and services,
passionate associates and committed partners.
BMW Brilliance was the first joint venture in China to join the United Nations Global
Compact.
GOALS: “5 STARS”
TOP QUALITY
Manage growth
and complexity.
While we continuously strive to improve our performance, we are proud of our sustainability
achievements to date. These include:
ASSOCIATES
Develop people,
organisation and enablers.
RETURN
Generate returns
on investments.
BMW Brilliance is a major contributor to local economic development. By 2014, for example,
we had been ranked as the highest taxpayer in Shenyang for nine consecutive years. In 2014
alone, we paid taxes of more than RMB 16 billion. By the end of 2014 we provided more than
15,000 high-quality job opportunities. In the foreseeable future, we plan to hire even more
employees with our plant expansion and the construction of our new engine plant.
We continue to advance and locally produce a range of efficient automotive products that
support our strategy of sustainable mobility. We launched the electric vehicle ZINORO 1E in
November 2013, and we started the production of the new BMW 530Le plug-in hybrid
(PHEV) in 2014, which was developed with our local research and development capabilities.
Our Tiexi plant is one of the most advanced and sustainable automotive plants in China and
the world. It uses world-class production technology to ensure low energy consumption and
low emissions, which define sustainability for modern automobile production.
BMW Brilliance is committed to sustainable talent development. Our goal is to create a good
working environment for our employees, where they can contribute their personal strengths
to help us achieve our vision. In 2014, the first group of 45 apprentices graduated from the
New Vocational Education Programme and became BMW Brilliance employees. We
established a new area for practical training, which provides the apprentices with room and
equipment to practice, according to the standards of the German dual education system.
We are committed to being an excellent corporate citizen. We believe it is an indispensable
part of our long-term commitment to China. In 2014, the BMW Warm Heart Fund distributed,
for example, student-aid funds to almost 1,000 outstanding college students from 14
provinces to assist them in completing their college studies.
SATISFACTION
Deliver personalised
service to customers
and dealers.
SUSTAINABILITY
Build innovative and
sustainable China business.
ORGANISING SUSTAINABILITY WITHIN BMW
BRILLIANCE
The BMW Brilliance Board of Directors is the highest authority. The Board of Management,
a management organisation under the Board of Directors, is responsible for the day-to-day
operation and management of BMW Brilliance.
In addition to developing the new corporate vision and STARS strategy, the Board of
Management also reviewed and validated our sustainability reporting process as well as the
key sustainability issues relevant to our business. Within BMW Brilliance, sustainability
issues are managed in a decentralised manner. Specialist divisions implement measures and
processes for the continuous improvement of our sustainability performance.
18
19
OUR MANAGEMENT APPROACH
SUSTAINABILITY MANAGEMENT
IDENTIFYING KEY SUSTAINABILITY ISSUES
As a result, we identified ten sustainability issues that are highly relevant for BMW Brilliance and its stakeholders. These
issues are our priorities. This report’s contents reflect the key issues that govern sustainability at BMW Brilliance:
To develop a solid basis for our sustainability management, BMW Brilliance reviewed our most relevant sustainability
issues with our key stakeholders. We invited 16 representatives of stakeholder groups to contribute their ideas and
concerns in individual, detailed interviews. Key topics raised during the stakeholder interviews related to product safety,
occupational health and safety, and fuel consumption.
Product safety
Corruption and anti-competitive behaviour
Product portfolio and research and development
Occupational health and safety
In an internal workshop with participants from the BMW Group and different BMW Brilliance divisions, we prioritised 28
potentially relevant sustainability issues according to each issue’s business impact on BMW Brilliance. We considered the
global context of the issues as well as where the most relevant impacts occur along the value chain.
Air pollution, emissions and climate change
Aftersales services
Talent attraction and retention
Employee development
F.01 BMW Brilliance matrix of relevant sustainability issues
Public policy
High
Energy consumption
Relevance for stakeholders
Energy
consumption
Medium
Waste and water
pollution
Employee/
Charity and corporate management
citizenship
relations
Forced labour
Relations to
local communities
Local economic
development
Human rights
Air pollution
emissions and
climate change
Corruption and
anti-competitive
behaviour
Aftersales
services
Product portfolio
and R+D
Talent attraction and
retention
Life balance
Our sustainability ambitions encompass our entire value chain. While our ten key sustainability issues are related to risks
or impacts in our own operations, some of them also relate to impacts that occur outside of BMW Brilliance’s direct control.
Product safety, energy and fuel consumption, as well as emissions, are strongly related to our customers’ driving habits.
With specific offerings such as driver safety training or Efficient Dynamics, we reduce the sustainability impact of our
products ( > see Chapter 2.1).
Energy consumption, emissions, occupational health and safety, and corruption are – on the other hand – strongly related
to our supplier base. Our localisation and supplier risk management strategies help us to reduce the sustainability impacts
in our supply chain ( > see Chapter 4.1).
We have implemented a sustainable development strategy throughout our value chain
(supply – production – retail), with equal emphasis on economic development, environmental
protection and social contribution. Human rights are a cross-cutting issue that relate to our
entire value chain as well as to all our stakeholders. The BMW Brilliance Joint Venture Equity
Contract explicitly relates to these rights. We respect human rights by avoiding infringement
on the human rights of others, and by addressing adverse human rights impacts that might
involve our company. Specific human rights related to our employees, suppliers, business
partners and the communities in which we live and work are outlined below and elaborated
upon in subsequent chapters.
Employee
development
Diversity and equal
opportunities
Marketing and
Customer data
Child labour and
product
protection and
young workers risk
communication
privacy
Product safety
RESPECTING HUMAN RIGHTS
Water
consumption
Material
consumption
Occupational
health and safety
Working
conditions
Mobility
infrastructure
Public policy
Low
Land use and
biodiversity
Low
Medium
Low relevance
20
High
Impact on BMW Brilliance
Medium relevance
High relevance
21
OUR MANAGEMENT APPROACH
SUSTAINABILITY MANAGEMENT
Human rights related to our employees
Human rights related to the communities and the environment
Through our Human Resource Guidelines, we commit to providing employees with a safe,
clean and open-minded working environment. The ILO Core Labour Standards are firmly
anchored in our values. In order to achieve this commitment:
Our business is deeply rooted in China, which integrates our pace of business development
with that of Chinese society. In order to achieve our long-term sustainability commitment to
China, BMW Brilliance:
our Human Resource Guidelines address full compliance with China’s Labour Law and relevant
regulations, in regards to forbidding forced, compulsory and child labour.
takes all necessary measures to fight corruption in order to prevent personal gain or preferential
treatment.
we established the BMW Brilliance Labour Union in 2007, working to protect employees’ rights
and interests and mediating disputes between employees and the company.
takes a comprehensive approach to product responsibility. We produce fuel-efficient vehicles
that are safe for drivers and other road users and better for the environment. We implement
holistic recycling and high-quality customer care.
we engage in a work environment that is free from any behaviour that could be considered as
harassment.
we support employees by providing medical care, occupational health services, and by promoting
health and healthy lifestyles, including health checks and flu vaccinations on a regular basis. We
also offer services such as medical insurance plans for our employees and their families.
takes social and environmental impacts into consideration in the earliest stage of infrastructure
planning, in order to minimise the impact on neighbours and local communities. All BMW
Brilliance infrastructure construction activities are pre-examined and go through a national
Environmental Impact Assessment.
to avoid discrimination, all employment decisions are made without any regard to race, colour, sex,
religion, national origin, marital status, age, sexual orientation, disability or military status. Migrant
workers are treated equally to any other employee, with full coverage of social welfare and protection.
commits to minimising our environmental impact, e.g. by continuously improving resource
efficiency of energy and water consumption, process wastewater, waste for disposal and VOC
emissions per vehicle produced.
the Human Resources Department and line managers review employee leave and working hours
on a monthly basis. All managers must ensure employees use their full entitlement of annual leave
over the year.
actively engages in the communities in which we live and work. We promote cross-cultural
understanding and social inclusion to reduce inequality and to safeguard social stability and
prosperity. We also provide educational support for new generations.
the minimum corporate salary at BMW Brilliance is higher than the living wage stipulated by the
government.
Human rights related to our suppliers and business partners
As we work together with our suppliers and business partners, we make every effort to ensure
they meet the same environmental and social standards that we set for ourselves. This
includes compliance with all internationally recognised human rights, as well as with labour
and social standards. In order to achieve this aim:
BMW Brilliance dealers must reach a relevant standard on sustainability. This includes dealers’
contributions to the local economy and employment, acting as an attractive employer and ensuring
their employee’s health and safety, their participation and dedication to the welfare of their local
community, as well as validating energy savings and lowering the carbon emissions of their operations.
we have set up a supplier risk management process to identify and analyse potential sustainability and
human rights risks along the supply chain. Our regular supplier review considers issues such as
operational health and safety, child labour risks or environmental impacts.
FORECAST
Having launched our STARS strategy in 2014, we will work further on defining our ambitions, internal responsibilities,
measures, and key performance indicators to realise our vision. We strive to integrate sustainability into all aspects of our
company and to further strengthen the sustainability culture within BMW Brilliance. As part of our target-setting process,
we will incorporate and phase in the sustainability targets that have been identified and prioritised by our management
team.
security forces hired directly by BMW Brilliance are treated like any other employee and therefore are
subject to the company’s guidelines. BMW Brilliance has no record of human rights infringements by
commissioned security forces.
22
23
STAKEHOLDER ENGAGEMENT
1.2 Stakeholder engagement
OUR STRATEGIC DIRECTION
SUSTAINABILITY MANAGEMENT
DEFINING STRATEGIES WITH OUR SHAREHOLDERS
Our Board of Management reports to the Board of Directors which represents our shareholders – BMW Group and
Brilliance Group. With our shareholders’ support, we integrate sustainability into our strategic decisions regarding
environmental, social and corporate governance issues. For example, during the development and launch of new energy
vehicle products, our shareholders provided support in terms of technology, product strategy and planning.
We build long-term trust with our stakeholders.
Our ongoing dialogue with BMW Brilliance’s stakeholders is a continuous learning process for our business. We
use targeted dialogues to understand various perspectives and to receive their input on strategically relevant
The BMW Group and the Huachen Automotive Group entered an “MoU on Deepening
Strategic Cooperation”
topics. We identify trends and key topics at an early stage which helps us to gain acceptance of our activities and
decisions. We want to build long-term trust with our stakeholders. This is important to demonstrate our
commitment to society and for our future business success.
We aim to achieve mutual benefits with a variety of different stakeholders. For the city of Shenyang, for example, our
business contributes significantly to tax, employment and economic development. For our Chinese customers, we are a
top automotive manufacturer in the premium market. For our business partners, we are committed to create a profitable
and responsible business. Understanding the different perspectives of these and other stakeholders allows us to gain
knowledge, build trust and deepen partnerships that are critical to the performance of our company.
STRATEGICALLY ALIGNING STAKEHOLDER ENGAGEMENT
Our main stakeholder groups are our shareholders, customers, employees, suppliers,
dealers, policymakers, students and society. BMW Brilliance’s stakeholder engagement is
reflected in our approach to key areas such as Product Responsibility, Human Resources,
Corporate Citizenship, Production and Supplier Management.
Dialogue with targeted stakeholder groups takes place in a wide range of formats that
include dialogues, presentations, events, meetings, surveys and training. For example:
we conduct customer surveys and talks to understand customer expectations and needs;
we train dealers to enhance their capacity and build greater customer satisfaction;
we arrange open discussions for employees with top management to understand their
concerns and suggestions;
we conduct ongoing dialogue with central and local policymakers to share our expertise; and
we interact with students and society to jointly raise awareness about issues such as
environmental protection and traffic safety.
24
Dr. Friedrich Eichiner, Member of the Board of Management of BMW AG, and Mr. Qi Yumin,
Chairman of Huachen Auto Group, signed a “Memorandum of Understanding (MoU)”.
On 28 March 2014, BMW Brilliance’s joint venture partners and shareholders – Bayerische
Motoren Werke AG and Brilliance China Automotive Holdings Limited – entered into an MoU
on Deepening Strategic Cooperation in Berlin. Dr. Friedrich Eichiner, Member of the Board of
Management of BMW AG, and Mr. Qi Yumin, Chairman of Huachen Auto Group, signed the
MoU. The signing ceremony was jointly witnessed by Chinese President Xi Jinping and the
Chancellor of Germany Angela Merkel.
Both parties are satisfied with the achievements of BMW Brilliance Automotive Ltd. over the
past decade, which rely on the shareholders’ joint value of “mutual trust and win-win”, as well as
a management model rooted in clear and effective corporate governance, leading and mature
development strategy, and direct and efficient cooperation between shareholders. This sets up
a role model for joint ventures in the automotive industry. They understand that their cooperation
has gone beyond operating a successful joint venture, and they are committed to following a
comprehensive strategy of cooperation on various levels – from technology and products, to
management and sales. Both parties agreed to further expand the joint venture’s production
capacity and introduce more sophisticated products for local production as a solid basis for the
joint venture’s future development. With the signing of the MoU, the BMW Group and the
Huachen Group are committed to achieving sustained success in the long term with concerted
efforts.
25
STAKEHOLDER ENGAGEMENT
SUSTAINABILITY MANAGEMENT
VALUING CUSTOMER FEEDBACK
ASSISTING OUR DEALERS
Our customers are at the heart of everything we do. We gain customer insights and
knowledge by conducting customer talks and surveys, which provide us with a clearer
understanding of how to meet their needs and expectations. We also interview customers
to obtain timely feedback about their satisfaction with purchasing and service experiences
at BMW dealers, or authorised repair shops. Most customer feedback is related to
enhancing the BMW service experience, for instance at the time that the customer’s car is
being serviced or repaired ( > see Chapter 2.3).
We engage with BMW dealers and help them improve their performance in several ways.
We offer dealer training, for example, to help them obtain the latest technology knowledge
in order to enhance the customer service experience. We also actively promote our 5S
dealer certification programme (Sales, Service, Survey, Spare Parts and Sustainability).
BMW 5S dealers must reach a relevant sustainability standard. This includes contributing
to the local economy and employment, helping to improve community welfare, and
validating the energy conservation and carbon emissions of their operations.
ENGAGING OUR EMPLOYEES
BMW Brilliance has a significant professional training network in China. This includes three
training centres, 15 training bases that work with local technical institutions, and 11 body and
paint training centres. In 2014, we provided over 250,000 man-days of training for dealers’
employees – the largest amount of training offered in BMW’s global markets.
In order to increase communication between our employees and senior management, our
Public Relations Department set up a series of open door and round table discussions.
Non-production and production employees both have the opportunity to meet with senior
management. In 2014, we held four open door and round table discussions.
We have also launched a set of resilience measures to help dealers manage their costs,
increase their revenues and improve their overall business efficiency ( > see Chapter 2.3).
By the end of 2014, the Labour Union covered 100% of employees who were eligible for
membership. Annual consultation sessions cover issues such as wage increase,
production plan scheduling and labour dispute mediation ( > see Chapter 5.1).
COMMUNICATING OPENLY WITH OUR SUPPLIERS
In 2014 we hosted another BMW Brilliance Supplier Day. Our event focused on our new
projects, bringing together suppliers and management for an open discussion forum.
Over 100 suppliers from across China took the opportunity to share their information,
expectations and challenges with other members of our network. We discussed our future
business plans and opportunities to work together, as well as logistics and quality-related
matters.
In particular, we discussed the challenge of addressing sustainability issues, such as
environmental and social responsibility. Our goal is to bring our suppliers geographically
closer to the BMW Brilliance plants in order to save logistics and energy costs.
Our Supplier Days have been very successful in building, as well as deepening, important
relationships with key suppliers and our own business partners. We have received
positive feedback from our suppliers and from the government on this initiative.
During the 2015 Supplier Day, we will introduce a BMW Brilliance award for innovative
sustainability ideas ( > see Chapter 4.3).
IN OPEN DIALOGUE WITH POLITICAL
DECISION-MAKERS
Over the past decade, BMW Brilliance has established relationships of mutual trust between
BMW and Brilliance as shareholders, and the Chinese government. We engage in regular,
open dialogue with political decision-makers, union representatives, associations and
non-governmental organisations. For example, in recent years we have discussed fuel
economy legislation, the national strategy on developing and promoting new energy
vehicles, air pollution control and traffic measures with these stakeholders. We want to play a
constructive role in shaping the general political framework for our business activities by
offering our expertise and helping to find sustainable business solutions.
Through our employees, and as part of our memberships in national associations and
industry-representative bodies, we foster an ongoing dialogue with policymakers.
26
27
STAKEHOLDER ENGAGEMENT
SUSTAINABILITY MANAGEMENT
ENCOURAGING CHINESE STUDENTS
EXAMPLES OF NATIONAL ASSOCIATIONS (GRI G4-16)
CAAM (China Association of Automobile Manufacturers)
CAEFI (China Association of Enterprises with Foreign Investment)
FOSTERING SOCIETY
BMW Brilliance has hosted a series of industry-leading corporate citizenship projects
as part of our long-term commitment to China. In October 2014, we held a “Lead the
Way to a Sustainable and Responsible Future – 2014 BMW Brilliance Sustainability and
Corporate Social Responsibility Forum” at our Tiexi plant. Internal and external
stakeholders gathered to discuss the journey to a more sustainable society under the
“New Normal” conditions in China.
By hosting this forum, we aim to build a platform for an interaction of ideas from experts
and opinion leaders. The forum allows these leaders to discuss the latest trends and
leading-edge developments in sustainability. They also exchange their experiences in
advancing sustainability and corporate social responsibility (CSR) innovation practices.
We will continue to fulfil our long-term commitment to contribute to the harmony and
sustainability of Chinese society, with the support of forum attendees ( > see Chapter
6.1).
28
We realise the importance of our relationship with college students. We promote our
values through our automotive technology and brand culture, with a goal of motivating
and supporting young talent and innovation. We have held nine consecutive “BMW
Days” at Shanghai Tongji University which were attended by nearly 200,000 college
students. Our goal is to showcase our innovative technologies and passion, as well as to
encourage Chinese students’ own spirit of innovation and inspiration. In the future, we will
further our cooperation with China’s higher education schools and contribute to the
cultivation of talent ( > see Chapter 6.2).
We realise the importance of close relationships with local universities. In 2014 we
launched a new Doctoral programme at the Northeastern University, known as ProMotion,
with four students, who are studying research and development, production planning, and
process optimisation. Through their practical thesis work, these young talents are
transforming their academic values into productivity improvements. To foster the young
spirit of innovation, we plan to committed to a further six Doctorate student placements in
2015.
FORECAST
We plan to foster and further expand our dialogue with BMW Brilliance’s key stakeholders. We plan to conduct a
stakeholder dialogue with them in 2015 to discuss trends in sustainability. We will continue to communicate openly with
them, and incorporate their valuable input, in order to advance our sustainability strategy and overall performance.
29
ANTI-CORRUPTION AND COMPLIANCE
SUSTAINABILITY MANAGEMENT
1.3 Anti-corruption and compliance
OUR STRATEGIC DIRECTION
We protect our company’s integrity and avoid risks associated with corruption and non-compliance. As a
responsible company, we take resolute action to combat bribery and corruption.
Acting responsibly and complying with the law are critical to the business success of BMW Brilliance. This
approach is integral to our corporate culture and helps define our image in the eyes of the general public. It also
helps to create trust in our products and brands. Any violation of the law could result in serious consequences for
our company, such as fines or compensation claims. Equally significant, our reputation could be damaged,
seriously weakening BMW Brilliance’s position as a leading provider of premium products and services. Therefore,
we must adhere to all applicable laws and regulations, which are the binding framework for our business activities in
China. The growth of our business, and the complexity of legal regulations in China, require that an effective
compliance management system is in place.
MANAGING COMPLIANCE
BMW Brilliance’s Compliance Management System is an important component of our
corporate governance system ( > see Figure 02). This landscape forms the basis for
corporate governance at BMW Brilliance and illustrates the levels of compliance
management. As shown in Figure 02, compliance management interacts with three
other corporate governance functions: Internal Control Management, Operational Risk
Management and Internal Audit.
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31
ANTI-CORRUPTION AND COMPLIANCE
SUSTAINABILITY MANAGEMENT
We have four internal functions to support managers and associates in corporate governance activities.
Internal control management
F.02 BMW Brilliance Corporate Governance Landscape
Run internal control review.
Managers and associates
Manage company regulations.
Monitor segregation of duties, control flows and other comprehensive control indicators.
Every associate is responsible for following regulations and compliance standards of BBA.
Support business departments on daily internal control management, e.g. review processes and define specific
Associates are responsible for the proper execution of control measures in the working procedures.
control points.
Managers are responsible for setting up and safeguarding continuous internal control, risk management and
compliance activities.
Counsel and provide training on internal control.
Operational risk management
Vision
nd
ph
ilo
so
ph
y
JV contract
AOA
BoD / AC
Laws
Regulations
Support managers to identify and monitor threats of impending losses to the company (individual and cumulative
risks).
Legal Compliance Code
Support managers to define and actively control potential risks – both within and outside the company.
Legislation
monitoring
Report risks.
Ge
ne
ral
rul
es
Et
hic
sa
Values
Policies
and guidelines
Set up regulations and activities to ensure operational risk management.
Procedures
BOM / Committees
Compliance management
Internal control framework
or
k
Risk management framework
Ext. audit
Fr
am
ew
Compliance framework
Strategy
Develop compliance strategy.
Monitor compliance environment.
Compliance risk management and monitoring.
Organisation
Processes
Design and update Legal Compliance Code and compliance regulations.
IT systems
Compliance communication and training.
Planning
and steering
Training
Execution
Monitoring
Human
resource
mgmt
Internal
control
mgmt
Operational
risk mgmt
Compliance
risk mgmt
Legal and
compliance
counselling
Da
ily
op
era
tio
n
Compliance governance and processes.
Supplier management
Dealer management
Audit
Compliance reporting.
Compliance counselling.
Maintain compliance hotline.
Internal audit
Provide independent assurance and consulting activity to add value and improve BBA’s operations.
Evaluate and improve the effectiveness of risk management, control and governance processes.
Lead investigation process for fraud cases.
32
33
ANTI-CORRUPTION AND COMPLIANCE
SUSTAINABILITY MANAGEMENT
We have established the BMW Brilliance Compliance Committee (BCC) to manage and monitor the overall effectiveness
of the Compliance Management System. Compliance Committee Working Procedures have been formulated to regulate
its activities.
Compliance Risk Analysis
Annual Risk Assessment of the business units of BMW Brilliance.
Analysis of compliance-relevant developments within the business environment.
Identification of further development potential.
The Compliance Management System of BMW Brilliance focuses on the fields of antitrust and competition, corruption and
bribery, fraud, defalcation and theft, data protection, and money laundering. The system includes the management of
possible compliance risks associated with our business (including risk identification, assessment, monitoring, control and
reporting), the implementation of compliance training programmes, the management of compliance enquiries and reporting
of non-compliance (the BMW Brilliance SpeakUP Line) and targeted communication measures, as well as the definition and
implementation of codes, guidelines and procedures.
Compliance Investigations and Controls
The Compliance office coordinates the cooperation of Corporate Audit, Legal Affairs, Corporate Security and other relevant
departments.
Investigations in case of identified compliance issues. Mainly conducted by Corporate Audit, Corporate Security and Legal
Affairs.
Compliance Spot Checks (e.g. anti-corruption audits) by the compliance office.
Compliance audits by Corporate Audit.
These measures are designed to protect BMW Brilliance’s business reputation and to ensure that the company, Board
members, directors, managers and employees act in accordance with all applicable laws and regulations.
Regular company-wide query of compliance risks and defaults as well as confirmation of adherence to the compliance
obligations.
BMW Brilliance Compliance Management System
Addressees are the Compliance Responsibles, i.e. the reporting level 1, the region heads, and the heads of defined specific units.
Compliance Contact and SpeakUP Line
Audit and Compliance Committee / Board of Directors
Reporting
Board of Management
Compliance Reporting
BMW Brilliance Compliance Contact: Helpline contact where compliance-relevant issues can be addressed (either by telephone
or via email).
BMW Brilliance and BMW Group Compliance SpeakUP Line: Anonymous and confidential notification of potential violations of
the law within BMW Brilliance (phone and Web service).
Compliance Committee
Compliance Committee Office
Compliance Operations Network of Compliance Responsibles
Annual
Compliance
Reporting Run
Legal Compliance Code and Regulations
The Legal Compliance Code forms the base of all compliance activities within BMW Brilliance.
Additional regulations address other subjects of special importance, such as corruption prevention.
Compliance
Risk Analysis
Legal Compliance
Code and
Regulations
Compliance Communication
“Tone from the Top” from the CEO and the Board of Management.
Target-group-specific communication to support compliance instruments and measures, e.g. intranet homepage, posters,
handbooks, newspapers.
Goal is to inform and sensitise all associates and other “Associated Persons” regarding legal compliance.
Compliance
Investigations
and Controls
Compliance
Communication
Compliance Training
Basic compliance training and special courses for specific target groups, such as competition and antitrust laws.
Compliance Instruments
and Measures of BBA
Compliance
Reporting
Trainings are mandatory for defined target groups.
Compliance
Training
Compliance Governance and Processes
Verifying processes to ensure obligatory supervision.
Risk-oriented steering of compliance activities.
Compliance
Contact and
SpeakUP Line
34
Compliance
Governance and
Processes
Examples: (1) Compliance Declaration for all managers, as well as
(2) Implementation of processes and tools, such as “compliance risk management process”.
35
ANTI-CORRUPTION AND COMPLIANCE
SUSTAINABILITY MANAGEMENT
IMPLEMENTING AND MONITORING COMPLIANCE
INITIATIVES
We address compliance risks through various compliance tools and programmes under the Compliance Management
System. In 2014, we implemented the following compliance initiatives:
Compliance risk management process
We have defined and developed a comprehensive compliance risk management process.
Our process includes a standard methodology for risk identification, assessment,
monitoring, control and risk reporting. By the end of 2014, as part of the compliance risk
management process, we had developed an overall risk map and risk ranking, and
formulated a corresponding risk monitoring strategy.
Compliance reporting
We have developed and distributed a customised compliance-reporting questionnaire to
our Compliance Operations Network. This type of “self-assessment” will be conducted
on a regular basis in the future.
Anti-corruption policies and procedures
In addition to the Compliance Committee’s Working Procedures, we updated our
compliance regulations, including the BMW Brilliance Guideline on “Corruption
Prevention” and the instruction on “Corporate Hospitality and Gifts”, both of which will
come into effect on 1 January 2015. These updates take the BMW Group’s guidelines
into account, as well as the business needs and local laws and customs of the Chinese
market.
A Compliance Committee Office has been set up to support the work of the Compliance Committee and dedicated to taking
care of any daily compliance matters across the company. At the operational level, each plant director and department head
who directly reports to a member of the Board of Management, as well as each head of the regional sales offices, are personally
responsible for compliance matters. The business leads for those areas designated as the most compliance-relevant functions
are responsible for this as well. These designated people form the Compliance Operations Network of BMW Brilliance.
Our Legal Compliance Code explains the central importance of lawful conduct to BMW Brilliance and provides an
overview of the legal areas relevant to our business, including: corruption and bribery, fraud, antitrust and competition,
protection of company assets, data protection, product liability, consumer protection, export control, foreign trade, tax
and customs, safety and health, environmental protection, and non-discrimination. Each manager receives a copy of our
Legal Compliance Code and it is published on our intranet. We have also published an Anti-Fraud Policy and Fraud
Response Procedure, a Corruption Prevention Guideline and Corporate Hospitality and Gift Instructions on the intranet
for all employees, which contain specific anti-corruption and anti-fraud guidelines and requirements.
36
We have also updated our Legal Compliance Code to reflect the stronger focus on
corruption prevention and the introduction of compliance instruments such as the BMW
Brilliance SpeakUP Line. The SpeakUP Line is a confidential phone line and an email
address that people can choose to – either with their real name or anonymously – report
a complaint or an observation of a breach of our Legal Compliance Code or compliance
policies, or of any prevailing legislation. The BMW Group SpeakUP Line is also available
for reporting BMW Brilliance related compliance cases. The BMW Group SpeakUP Line
provides services in a variety of languages and the encryption of voices.
The members of our Board of Management have paid particular attention to compliance
matters, including anti-corruption. Our Board of Management approves all anti-corruption
policies and, therefore, all members are fully aware and knowledgeable of these policies
and procedures. Additionally, in 2014, all anti-corruption policies and procedures
approved by the Audit and Compliance Committee of the Board of Directors were also
presented to the Board members.
In addition, the Compliance Committee Office, together with the IT Department, has
systemised anti-corruption compliance control processes.
37
ANTI-CORRUPTION AND COMPLIANCE
SUSTAINABILITY MANAGEMENT
Targeted communication measures and training
Managers throughout BMW Brilliance must demonstrate responsibility by setting a good
example for their staff. They are required to be fully aware of the significance of the Legal
Compliance Code as well as the newly released compliance regulations, and to make a
commitment to adhere to such internal regulations in order to avoid legal and compliance
risks. For this purpose, we launched a communications campaign in 2014 to introduce the
new compliance function and the new compliance regulations across the company. We
introduced our new compliance measures to employees in the following ways:
the Legal Compliance Code was distributed to every manager and the Associate Handbook
(which contains compliance-related topics) was distributed to every employee;
our CEO issued letters to all employees as a message-from-the-top to underscore the
importance of these matters;
posters regarding compliance were displayed in the Beijing office and in the Shenyang plants;
mandatory training was conducted for all new managers or more senior positions, regardless of
functions;
mandatory training was conducted for employees whose functions are considered sensitive and
exposed to high compliance risks, as well as for compliance management partners; and
compliance coaching was implemented at the departmental level.
In 2014, over 200 managers and employees received on-line compliance training. BMW
Brilliance managers also received new manager orientation on-site training as part of our
compliance processes. For example, managers were trained on compliance issues associated
with fair competition, corporate hospitality, gifts, allowances and the provision of vehicles.
Ensuring compliance in business relations
We have also established compliance measures for our business relations with external
partners, such as including compliance clauses in purchase orders and event invitation
letters. As an automotive manufacturer, we have developed standard vehicle provision forms
with compliance clauses, which we use when we provide automobiles to external parties.
FORECAST
In 2015, a Compliance Risk Management Manual and related toolkits will be developed and distributed, creating the basis
for ongoing compliance risk assessment and monitoring of the Compliance Operations Network. Additionally, we will
further integrate a self-assessment procedure into the internal corporate control procedure for each business department
to enhance our assurance of legal compliance. We will closely monitor and follow up on any observations or issues
highlighted by our compliance programme. The Compliance Committee Office will identify potential training opportunities
with our business partners and will develop further communications on compliance management.
RESPONDING TO COMPLIANCE-RELATED ENQUIRIES
AND NOTIFICATIONS
In order to avoid legal risks, employees are expected to discuss any compliance-related issues
with their managers, and with the Legal Affairs and Compliance, Audit and Human Resources
Departments. Employees who have any concerns may submit their information anonymously
and confidentially through the BMW Brilliance SpeakUP Line about any possible legal violations.
In 2014, BMW Brilliance responded to cases of employee misconduct based on internal
regulations. In responding to these cases, we wanted to ensure that BMW Brilliance and our
employees adhered to the highest standards of professional behaviour and responsibility to
protect our corporate integrity. In addition, to ensure compliance with internal rules and
external regulations, internal audits were conducted by the Audit and Shareholder Audit
Departments.
38
39
02
PRODUCT
RESPONSIBILITY
2.1
2.2
2.3
2.4
Our management approach p. 43
Product safety p. 46
Customer satisfaction p. 50
Efficient mobility p. 54
OUR MANAGEMENT APPROACH
How do you evaluate ZINORO’s performance? What is your deepest impression experienced during
driving? How do you feel about our support services such as charging?
From my driving experience, this model has BMW’s reliable chassis performance and its acceleration is very
smooth. I can use a charging station provided by my company. Here, however, I strongly advise your company
to separately solve the charging-related problems, for example by further speeding up the process of
constructing charging stations in public parking areas.
How do you feel about this brand?
PRODUCT RESPONSIBILITY
2
PRODUCT
RESPONSIBILITY
As a joint venture, self-owned brand of BMW Brilliance, ZINORO is still in its infancy, and promotion and
maintenance are needed. We now see more and more of this model on the streets. I hope ZINORO
gathers more insight from its current leasing model, and uses this to further popularise this brand in the
marketplace, so that more and more end-users can enjoy its performance and convenience.
What is your understanding and insight on China’s sustainable development?
Industrialised countries all went through a phase of pollution, and China is no exception. However, China
has passed the phase of high-speed growth accompanied by excessive pollution, and has started to tackle
environmental pollution. In this phase, environmental protection and “green industry” will experience
significant growth, and the electric vehicle is included in this category. In the future, electric vehicles will
become more advanced and more accepted by drivers because of their service systems, R&D advancements
and their production values. This zero-emissions and environmentally friendly way of travel will become a new
trend.
Yao Yang
2.1 Our management approach
We take a comprehensive approach to product responsibility. For us, sustainability starts with the development
of fuel-efficient vehicles and innovative solutions for electric mobility that are safe for drivers and other road
users. Product responsibility includes resource-efficient development and production processes, as well as
integrated and high-quality customer care. Recycling ensures that our vehicles provide valuable raw materials
after they reach the end of their life cycle. Our commitment to localise and expand our business activities in
Dean, National School of Development
Director, China Center for Economic Research, Peking University
China – including our product portfolio, our production levels and our research and development activities
– supports this approach.
BMW Brilliance is committed to introducing the latest products and technologies into the Chinese market. We currently
produce the BMW 5 Series Li, BMW 3 Series, BMW X1 and the ZINORO 1E – in total, over 30 models. Additionally, at
the end of 2014, we began producing the BMW 530Le plug-in hybrid electric vehicle. Our products are produced and
inspected thoroughly in accordance with the BMW Group’s global standards, ensuring the same high quality.
42
43
OUR MANAGEMENT APPROACH
EXPANDING OUR BUSINESS IN CHINA
Since BMW Brilliance’s inception in 2003, we have focused on developing our business
in China. Our pace of expansion has been rapid and includes the localisation of our
production and products, the introduction of BMW engines and the establishment of our
Research and Development Centre. This centre highlights the importance of the
Chinese market to our business, focusing on the development of new energy vehicles.
The centre works closely with the Research and Development team from BMW Group
and benefits from its technology expertise.
The over 500 engineers working in our Research and Development Centre were mostly
recruited locally. For example, the centre developed the high-voltage battery for the
ZINORO 1E and conducted the vehicle testing and approval of the BMW 530Le plug-in
hybrid, which will be introduced into the Chinese market beginning in 2015.
In 2014, as a result of our localisation and expansion strategy, sales of our locally produced
vehicle models exceeded 60% of the total sales of the BMW brand in mainland China.
PRODUCT RESPONSIBILITY
PROVIDING PREMIUM CUSTOMER SERVICE
Enhancing our aftersales service and maximising customer satisfaction are core to
expanding our share of the premium segment in China. In 2014, we continued expanding
and enhancing our sales and service network, while providing our customers with a varied
selection of products. By year-end, we had 460 BMW sales and service outlets across
China in operation. Thirty-five dealers were certified according to our 5S model, which
adds high sustainability standards to our BMW 4S dealership model.
INCREASING THE EFFICIENCY OF OUR VEHICLES
We are committed to reducing fuel consumption and emissions in China. As a result of
the BMW Group Efficient Dynamics strategy, the energy requirements of each of our
models are being continuously reduced. In addition, we are adding electrically powered
and plug-in hybrid cars to our model range. This allows us to contribute directly to
China’s national target of reducing industrial average fuel consumption to 6.9 litres of
petrol per 100 kilometres by 2015. In 2014, BMW Brilliance’s Corporate Average Fuel
Consumption was 7.06 litres per 100 kilometres (2013: 7.3 litres per 100 kilometres).
This positions us as number one in the national ranking of the fleet fuel consumption
achievement rate among 88 local manufacturers, according to the 2014 Corporate
Average Fuel Consumption (CAFC) report of the Chinese authorities.
ACHIEVING HIGH PRODUCT STANDARDS
All vehicles produced in our plants are certified to the international standards of ISO
14020, Environmental Labels and Declarations; and ISO 14024, Environmental Labels
and Declarations - Type I Environmental Labelling. Our vehicles are also certified to the local
Chinese standard HJ 2532. In general, BMW Brilliance’s product standard requirements are
higher than China’s mandatory requirements for product emissions, fuel consumption, the
use of environmentally sound materials, and recyclability and reusability throughout a
product’s life cycle.
TAKING A BROADER VIEW OF PRODUCT SAFETY
We will continue to enhance our localisation strategy by expanding both our Dadong and Tiexi plants, in addition to building
a new engine plant, and producing three new vehicle models in China. In January 2015, BMW Brilliance will celebrate
another significant milestone – the one millionth vehicle rolling off our assembly line.
BMW Brilliance follows the approach of the BMW Group to understand the safety of our
customers and other road users, which is fundamental to our vision of product responsibility
as a provider of premium products and services.
We will continue to introduce innovative mobility solutions and technologies. We plan to expand the Research and
Development Centre in Tiexi to include a test bench area for fuel consumption and driving performance. This will help
us improve our locally developed electric and hybrid technology and test our new powertrain components.
We reduce the risk of accidents through active safety features and we mitigate their effects
through the passive safety systems included on our vehicles.
44
FORECAST
We will continue developing our dealer network to be closer to our customers and to ensure high-quality services. We will
also continue promoting the 5S dealer concept in China by encouraging the voluntary involvement of authorised dealers
nationwide, to further develop their sustainability engagement.
45
PRODUCT SAFETY
2.2 Product safety
PRODUCT RESPONSIBILITY
PREVENTING ACCIDENTS THROUGH ACTIVE SAFETY
SYSTEMS
Active safety systems include perfect chassis coordination, optimal traction and effective
brakes. Electronic chassis control systems also contribute towards preventing accidents.
OUR STRATEGIC DIRECTION
Our strategic approach matches that of the BMW Group. We protect our customers and other road users from
injury by creating networks of active and passive vehicle safety systems.
One of the main ways we increase safety is through driver assistance systems, which are
being increasingly integrated into our model ranges. These systems provide a second set of
eyes to observe what is happening on the road in order to warn and support the driver.
The traffic jam assistant is another important support function. In long and monotonous
driving situations, for example in traffic congestion, the traffic jam assistant helps to keep
the car longitudinally and laterally positioned in the lane, easing the strain on the driver.
BMW Brilliance follows the global safety standards of the BMW Group to provide premium products and services
for individual mobility in China. The safety of our customers and other road users is paramount and fundamental
to our sense of product responsibility. We take an integrated approach to product safety, which encompasses
both active and passive safety systems. It also addresses such aspects as product labelling, safety training,
avoidance of potentially dangerous materials, as well as minimising emissions in vehicle interiors.
Our objective is to avoid risks for road users and any adverse health consequences in the event of an accident. Our
technologies and strategies for the safety of all road users are based on systematic research into the causes of
accidents, which the BMW Group has been carrying out for over 30 years. Our integrated approach analyses the entire
process chain, from accident prevention to post-crash applications. Based on this analysis, we integrate active safety
features into our vehicles to try to prevent accidents from happening in the first place, and we apply passive safety
features to mitigate their consequences.
ENSURING SAFETY FEEDBACK
BMW Brilliance develops and manufactures products in strict compliance with the
BMW Group’s quality management systems. We monitor our product performance and
review all safety feedback. If necessary, we inform the responsible authorities about any
customer safety issues and initiate any required safety measures. We have established
relevant processes and procedures to ensure we act upon the feedback we receive
from our customers and the marketplace.
SAVING LIVES THROUGH PASSIVE SAFETY SYSTEMS
Providing safety through active battery management
The ZINORO 1E is equipped with an innovative battery safety system. This features a
liquid cooling and heating system that can increase the battery adaptability and safety in
various environments. In a low-temperature environment, it realises the ideal working
temperature. And in a high-temperature environment, it prevents overheating. The battery
management system features a self-diagnosis and management function. It monitors
dynamically all key parameters of the battery such as storage, charge, discharge and
operating status. In the event of an accident, it will disconnect the battery from the
vehicle’s electric system. This will ensure all parts are electrically neutral and guarantee
the safety of the vehicle and passengers.
GUARANTEEING PRODUCT AND SERVICE
INFORMATION
BMW Brilliance informs our customers if any potential risks and hazards related to our
products exist, as well as the environmental performance and proper use of our products and
services. For example, we report on the fuel consumption of our vehicles in accordance with
China’s vehicle fuel consumption regulations. We also report fuel consumption for each of
our vehicle models on the Ministry of Industry and Information Technology’s website.
Information on vehicle safety and protecting customer health can be found in the respective
manuals or in notes inside the vehicle (e.g. rescue card), as well as on our official website.
Additional background information on service, accessories, parts and BMW ConnectedDrive
is likewise available online. We ensure that any customer product and service information
meets all technical requirements.
Our vehicles have energy-absorbing crumple zones, safe passenger cells, restraint
systems, airbags and many other passive safety features that protect the lives and health
of drivers daily. In order to provide drivers and passengers with the greatest possible
protection in the event of a collision, various safety elements work hand-in-hand. A
networked system of highly sensitive sensors enables airbags to deploy in the appropriate
situation and at precisely the right moment. Pyrotechnically activated seatbelt pretensioners
and seatbelt-force limiters further minimise risk of injury. The vehicle front has various
devices installed to protect pedestrians, including a shock absorber. This is integrated
between the bumper carrier and panel to reduce leg injuries in a collision.
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47
PRODUCT SAFETY
PRODUCT RESPONSIBILITY
OFFERING DRIVER SAFETY TRAINING
BMW Brilliance also contributes to protecting road users through driver safety training.
We offer 12 different training courses, and in 2014 1,150 participants learned how to
identify critical driving situations and respond properly. This included how to avoid such
situations, if possible, in the first place.
FORECAST
USING SAFE MATERIALS IN OUR VEHICLES
For each phase of the vehicle life cycle – from development through to use and disposal
– our specialist departments ensure compliance with worldwide legal requirements for
product safety and human health. In the early development phase, a “Materials”
interdisciplinary working group evaluates the potential materials to be used in a product
to determine the risk potential and to eliminate any problematic candidates. The
working group can then intervene in the selection and development process as well as
in the production as needed.
In the coming years, we plan to further strengthen both our active and passive safety features. In particular, we plan to
consistently introduce warning and emergency brake systems for all vehicle categories.
In line with our vision to create highly automated driving experiences, we will offer a range of modern driver assistance
systems, which will allow us to come another step closer to the ideal of accident-free mobility.
Qualifying the materials we use
We test all current and future products according to the standards of the BMW Group. As
well as series parts, all auxiliary production substances and process materials, such as
paint and adhesives, undergo rigorous qualification processes.
We fully document all chemical substances that are used in our production processes.
These substances are first inspected to ensure their safety and then approved for a
specific application through our central recording system for environmentally relevant
substances. The system also provides detailed specifications and tips on handling these
products as well as on first aid, storage and transport.
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49
CUSTOMER SATISFACTION
2.3 Customer satisfaction
OUR STRATEGIC
DIRECTION
OUR STRATEGIC DIRECTION
We aim to create a perfect “customer journey” ensuring perfection with each customer interaction.
PRODUCT RESPONSIBILITY
Customer treatment requires all dealership staff to have the right knowledge and attitude
to provide the best customer experience possible. To achieve this, we have implemented
an extensive on-site training customer treatment programme for our dealers. Since 2013,
over 310 dealers have participated in this programme.
Training dealers in process improvement
We want to assure high levels of customer satisfaction, efficiency and transparency in our
aftersales services. To accomplish this, we have implemented a specialised on-site
coaching programme which is complemented by regional workshops for our dealers.
Specific campaigns, such as the end-of-warranty check for our vehicles, are designed to
fulfil our customers’ needs and increase their satisfaction with our services.
Our customers are at the heart of everything we do. Their satisfaction with our products and services is a
prerequisite for our business success, today and in the future. By analysing our customers’ needs continuously,
and improving our premium products and services accordingly, we work to ensure greater customer satisfaction
A targeted action plan will be developed to further describe our aftersales services, based
on a customer satisfaction survey.
and loyalty.
Fostering sustainability among dealers
To maintain our success, we must look after our customers better than anyone else. Customer satisfaction is our number
one priority and delivering premium customer service is the responsibility of everyone in BMW Brilliance. We work hard not
only on the implementation of our processes, but also on the continuous improvement of the customer experience.
IMPROVING CUSTOMER INTERACTION
Customer Interaction Centre
We aim to continuously improve our customer interactions and support. The BMW
Customer Interaction Centre has been running a customer hotline service since 2005.
The purpose of the Customer Interaction Centre is to gain customer satisfaction and
loyalty by constantly providing high-quality services to create the maximum value of
customer service. In 2014, the volume of inbound calls increased by over 60% to 770,000
and the outbound calls increased by over 170% to 4.8 million. The majority of the inbound
calls were related to customer inquiries, while the outbound calls were mainly related to
customer surveys and event invitations.
In 2011, BMW Group extended its sustainable development strategy to the retail field by
introducing the 5S dealer certification programme. This approach incorporates the
concept of sustainability into the traditional 4S dealerships. BMW is the first automotive
brand to introduce and practice this new concept. BMW 5S dealers must reach a
relevant standard on sustainability, including their contribution to the local economy and
employment, participation in and dedication to community welfare, as well as the validity
of energy conservation and the efficiency of carbon emissions in their operations.
In 2014, we added five new 5S dealers to the group, bringing the total 5S network to 35.
Moreover, 16 dealers were successfully re-certified according to the 5S certification
model. We held 340 person-days of training based on the 5S model focusing on
environmental protection and work safety.
INCREASING CUSTOMER SATISFACTION WITH
DEALERSHIPS AND AFTERSALES SERVICE
Training dealers in customer treatment
Future retail is our fundamental reinterpretation of the customer experience in dealerships,
making it more personal, more emotional and more inspiring.
The aim of customer treatment in retail is to create a consistent emotional premium
experience through staff interaction. All dealership staff are encouraged to think about
what they would start, stop, or do more of, to enhance the customer experience.
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51
CUSTOMER SATISFACTION
PRODUCT RESPONSIBILITY
ENSURING COMPREHENSIVE DATA PROTECTION
We continuously improve our systems and processes to ensure our compliance with all
data protection requirements when handling our customers’ personal data. Our Data
Privacy Protection Office was established to protect customer data and its usage through
technical security. Customer data security is the highest priority for our projects.
In 2014, BMW Brilliance implemented a data privacy protection process. The new process
became effective in March 2014 in accordance with the amended customer rights and
interest protection law. Both BMW Brilliance and our dealerships adhere to the customer
data privacy protection process of the BMW Group.
IMPROVING FURTHER THROUGH
CUSTOMER SURVEYS
Our Customer Satisfaction Index helps guide us on how to fulfil customer needs and
increase customer satisfaction. Customer orientation is a central element within our
business strategy. After customers purchase a vehicle, a representative from the BMW
Customer Interaction Centre will contact them for their feedback on the sales and
aftersales service including purchasing, vehicle handover and maintenance. Our aim is
to find out if the customer is satisfied or not, and what our dealers and staff can do to
increase their satisfaction. In addition, our customers are invited to give timely feedback
about their satisfaction with their purchasing and service experience at the BMW
dealership or authorised repair shop. The results and customers’ exact comments are
recorded and reported to company management. This direct feedback provides our
foundation for driving customer satisfaction and managing continuous improvement.
Our regular customer talks allow BMW Brilliance’s management to directly experience
customers’ perceptions and expectations on a regular basis. All first-hand customer
comments are recorded and distributed to related functions for continuous improvement.
In 2014, approximately 240,000 customers provided feedback through our survey
(2013: approximately 220,000). We have used this data to analyse and improve our
Customer Satisfaction Index and to continuously improve our customer satisfaction
performance.
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FORECAST
We will continue to provide more information to our customers targeted to their specific interests. For instance, before
a customer’s warranty expires, they receive a reminder to bring their vehicle back to the dealership for a check-up within
the warranty time period.
Starting in 2015, the BMW Interaction Centre will establish a new multi-media communication channel to further
intensify the exchange and interaction with our customers.
A sustainability onsite coaching programme will be implemented for our dealers, with the aim of further improving the
premium customer experience.
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EFFICIENT MOBILITY
PRODUCT RESPONSIBILITY
F.04 Fleet fuel consumption
2.4 Efficient mobility
2013
2014
7.30
7.06
Change to previous year
I/100 km
OUR STRATEGIC DIRECTION
-3.4%
We are continuously reducing the CO2 emissions from our vehicle fleet and aim to be the leader in taking a holistic
approach to premium electromobility.
China faces many challenges to its environmental capacity, including a shortage of resources and the rapid
growth of its cities. In response, the country is now imposing increasingly stringent emissions regulations, as
is the case globally. In this context, our vision of sustainable mobility is becoming even more imperative to
We are fulfilling our responsibility to reduce CO2 emissions along the entire value chain. By continuously increasing the
efficiency of our vehicles, we are also reducing CO2 emissions levels during their utilisation phase ( > see Figure 05).
Emissions in the supply chain also make a considerable contribution towards so-called Scope 3 emissions. For this reason,
we contribute to the aim of the BMW Group which is to improve the resource efficiency amongst our suppliers.
achieving business success. As part of the BMW Group Efficient Dynamics strategy, we use innovative
efficiency technologies in all models. Additionally, we are introducing electrically powered and plug-in hybrid
vehicles into our model ranges.
F.05 Indirect CO2 emissions (Scope 3) of BMW Brilliance automobiles in 2014
SAVING FUEL AND REDUCING EMISSIONS
in t
We are reducing the energy requirements of our vehicles through intelligent lightweight
construction, innovations in energy management and consistently optimised aerodynamics.
We are also constantly expanding and further developing our efficiency technologies.
We are offering more electrified drivetrains to our Chinese customers. Following the
successful introduction of the battery-driven ZINORO 1E (which is produced at our Tiexi
plant) as well as the BMW i3 and the plug-in hybrid i8, we began producing the new plug-in
hybrid version of the BMW 5 Series, as the first locally produced premium plug-in hybrid
model.
As a result of our efforts, between 2013 and 2014, we were able to reduce the CO2 emissions
of our newly sold vehicles in China by 6 grams per kilometre ( > see Figure 03). The average fuel
consumption of our vehicles in 2014 was 7.06 litres of petrol per 100 kilometres, 3.4% less
than in 2013.
Total emissions
16,394,198
Upstream chain1
3,397,690
Utilisation phase2
12,733,885
Disposal3
262,623
1.
Emissions from the upstream chain are calculated based on the carbon footprints of representative vehicles from the
product lines.
2.
The fleet emissions are extrapolated from the average fleet emissions of the BMW Brilliance products sold in a given year.
The calculation was based on an average mileage of 150,000 km.
3.
Emissions from disposal processes are calculated based on the carbon footprints of representative vehicles from the
product lines.
F.03 CO2 emissions of BMW Brilliance automobiles
2013
2014
Change to previous year
174
168
-3.4%
g/km
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55
EFFICIENT MOBILITY
PRODUCT RESPONSIBILITY
SAVING FUEL IN SERIES MODELS
Our range of efficiency technologies represent the first and currently most effective components
in emissions reduction. These include efficient engines, optimised aerodynamics, intelligent
energy management, lightweight design, forward-looking drive control, the Auto Start Stop
function, brake energy regeneration, and tyres with reduced rolling resistance or air flap control.
Driving in ECO PRO mode, for example, will reduce fuel consumption by up to 15% depending
on the individual’s driving behaviour. As soon as the ECO PRO mode is activated, it optimises
the drivetrain systems management and the heating and air-conditioning functions to ensure
maximum efficiency. ECO PRO mode also gives the driver specific hints on how to drive more
efficiently, such as displaying the most efficient gear to drive in for each driving situation.
Vehicles with automatic transmission can cruise between 50 kilometres per hour (km/h) and
160 km/h. As soon as the driver releases the accelerator, the drivetrain is decoupled and the
vehicle will coast and run at minimum consumption. The Proactive Driving Assistant uses data
from the navigation system to tell the driver about speed limits, tight bends and roundabouts or
turns ahead and gives tips on the most efficient way to drive.
To complement our efficiency technologies, BMW ConnectedDrive uses the BMW navigation
systems to map out the traffic situation on main roads in near real time. This enables the driver
to avoid congested areas and save fuel. BMW ConnectedDrive is a package of intelligent
technologies that interconnect the driver, vehicle occupants and the vehicle itself with the
environment. The system is based on the two pillars of driver assistance systems (comfort and
safety functions) and services (infotainment and mobility products).
One of the company policies of BMW Brilliance and the BMW Group is to meet the newest
emissions standards of all regulations worldwide. As a result, we are involved internationally in
the discussions on new emissions targets and plan to align our research capacities as soon as
possible with the new targets.
AWARDS FOR THE ZINORO 1E 2014
Most Expected China Brand (i Auto)
The Innovative Brand (Motor Trend)
The Best New Energy Vehicle of the Year (Automotive Observer)
NEV of the Year (China Automotive News)
Best EV of the Year (China Auto Pictorial)
CELEBRATING THE SUCCESS OF THE BATTERYDRIVEN ZINORO 1E
An important component of our Efficient Dynamics strategy is our electromobility activities. Our
flagship model of this strategy is the ZINORO 1E, which is the first product of our ZINORO
brand.
Attracting customers to the ZINORO brand
We are committed to creating a sustainable premium automotive brand that truly belongs to
China. ZINORO 1E made its debut in November 2013. This product showcases BMW
Brilliance’s strength in development, testing and production of electric vehicles. As the first
premium zero-emissions sports activity vehicle in China, ZINORO 1E is environmentally
friendly, highly energy-efficient and satisfies the highest safety requirements. It sets the new
benchmark for premium electric cars in China. The powertrain is based on the latest BMW
technology, which includes high-performance and lightweight components such as the electric
motor and a highly integrated power electronics unit. ZINORO 1E has no engine noise. Its
driving range of 150 kilometres can satisfy the daily usage of a vehicle in the city.
56
We are offering the ZINORO 1E for customer rental. This will help promote our ZINORO
brand in the Chinese market, contributing to our goal to raise customer acceptance for new
energy vehicles in the coming years. We provide customers with a worry-free rental
package, including the installation of the charging facility, with aftersales service, repairs
and maintenance costs all included in the rental price.
As part of building our brand communication and customer service, we have opened
ZINORO showrooms in Beijing and Shanghai. These showrooms offer premium electric
mobility services to both private and institutional customers.
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EFFICIENT MOBILITY
LEVERAGING HYBRID DRIVETRAINS
Another vital component of our Efficient Dynamics strategy is the electrification of the
drivetrain using various hybrid solutions. This approach enables us to realise further
fuel-saving potential.
In 2014, we began production on the new BMW 530Le plug-in hybrid (PHEV) in our
Dadong plant. This model sets the benchmark in its automotive segment in terms of fuel
efficiency and emissions. It has the lowest fuel consumption (2.0 litres per 100 kilometres)
and lowest CO2 emissions (49 grams per kilometre) in its class.
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PRODUCT RESPONSIBILITY
FORECAST
We are well positioned to meet increasingly demanding future CO2 targets in China with our strategic focus on Efficient
Dynamics. We will continue our development of pure electric vehicles, as well as plug-in hybrid vehicles. We will actively
promote the construction of charging facilities and contribute to the development of sustainable individual mobility.
In 2015, we will launch the new BMW 5 Series plug-in hybrid, giving our Chinese customers the privilege of being the first
to experience BMW’s eDrive technology. The eDrive technology will be introduced in additional product lines in the future.
We also plan to present our newest ZINORO brand concept car – ZINORO Concept Next – at the Shanghai Auto Show. The
ZINORO Concept Next endorses BMW Brilliance’s long-term strategy of localisation and sustainable development in
China.
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03
ENVIRONMENTAL
PROTECTION
3.1
3.2
3.3
3.4
Our management approach p. 63
Energy consumption and emissions
Waste reduction p. 72
Water p. 76
p. 66
OUR MANAGEMENT APPROACH
What are the current priorities regarding environmental protection at BMW Brilliance production sites?
Currently, our main priority is the improvement of the efficiency of our energy and water consumption.
What are the major challenges?
One of the challenges we are currently facing is the lack of renewable energy resources in the city where
our production plants are located. Energy production is mainly coal-based, which means more CO2 and
other pollutants are emitted.
ENVIRONMENTAL PROTECTION
3
ENVIRONMENTAL
PROTECTION
How do you engage employees on environmentally friendly production?
We provide environmental training to all newly on-board employees and refresher training on a regular
basis to increase awareness of environmental protection. We also conduct campaigns to involve all
employees in environmental protection initiatives. We encourage our employees to suggest ideas on new
ways to protect the environment. Finally, we believe the environmental commitment and leadership of our
3.1 Our management approach
top management also indicates to employees the importance we place on protecting the environment.
We aim to be the leading and most resource-efficient premium automotive product manufacturer in China. Our
What does environmental protection mean in financial terms?
By improving our environmental performance, we reduce our operating costs, thus increasing our operational
efficiency and our competitiveness as a business. Additionally, improving our performance helps to reduce or
efficient use of resources and energy minimises our environmental impact, decreases our costs and helps maintain
our corporate reputation. Our environmental policy and management system are fully aligned and integrated with
BMW Group-wide environmental policies, guidelines and management systems.
eliminate compliance risks with respect to environmental protection, and ensures the continuity of our
business. Strong environmental performance will also enhance the image of BMW Brilliance, which will
ultimately help improve our sales volume by maintaining a stable share of the market.
Luke Liu
Manager, E&S Planning and Steering, BMW Brilliance
INTEGRATING ENVIRONMENTAL PROTECTION INTO
OUR BUSINESS
Environmental protection is fundamental to our sustainability strategy. We are part of the
BMW Group’s international environmental protection network. A central department within
BMW Group, responsible for Corporate Planning and Product Strategy, Sustainability and
Environmental Protection, leads the network. Our plant managers are responsible for the
environmental management of our operations.
The Safety and Environment team of our Human Resources Department leads the
environmental protection initiatives and targets at all of our plant locations. These
initiatives are based on the Cleaner Production approach of the United Nations Environment
Programme (UNEP). We aim to keep our consumption of resources and the environmental
impact of our production processes as low as possible. By doing so, we are contributing to
the BMW Group’s environmental target for 2020, which aims to reduce resource
consumption by 45%, per vehicle produced, compared to 2006.
We focus on reducing the environmental impact of our activities in three key areas: energy
consumption and emissions ( > see Chapter 3.2); waste reduction ( > see Chapter 3.3); and
water consumption and process wastewater discharge ( > see Chapter 3.4).
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63
OUR MANAGEMENT APPROACH
SHARING BEST PRACTICES
We aim to reduce the environmental impacts of all our production plant locations. BMW
Brilliance’s environmental management system is based on relevant legislation,
international standards and BMW Group-related guidelines, as well as best practices. Our
Board of Management appoints a representative to ensure the effective implementation of
our environmental management system.
TÜV Rheinland has certified all our plant locations in accordance with ISO 14001. This
indicates:
ENVIRONMENTAL PROTECTION
INTEGRATING ENVIRONMENTAL PROTECTION INTO
NEW PROJECTS
During the planning of a new production facility, we conduct a detailed site assessment
with input from internal environmental experts and from the Shenyang Environmental
Science Institute. This practice allows us to consider any potential environmental
impacts at the outset of a project, and to implement any actions or further improvements
as necessary. It also allows us to continuously improve our performance and implement
best practices from across BMW Group plants.
the environmental management of BMW Brilliance complies with this international standard;
it is in compliance with legal and other requirements it subscribes to; and
our environmental performance is systematically improved.
To ensure continuous improvement, we annually conduct two internal audits and one
external audit of our environmental management system.
We have established Centres of Competence for energy, water, waste and emissions that
are managed by environmental experts from our different plants. Working groups meet
regularly to discuss best-practice solutions for issues that may arise. These groups meet
regularly with environmental protection experts from other BMW Group plants to build the
competence of local teams and employees, and to share best practices globally.
FORECAST
In 2015, our priority is to continue enhancing our processes in order to minimise the environmental impacts of our
production system. We will establish an energy improvement working team with members of all relevant technical areas
and departments. We anticipate that this will lead to an improvement of our overall energy efficiency, bringing us closer
to the BMW Group’s 2020 target for energy consumption.
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65
ENERGY CONSUMPTION AND EMISSIONS
3.2 Energy consumption and emissions
OUR STRATEGIC DIRECTION
BMW Brilliance contributes to the BMW Group’s environmental target. By 2020, it is planned to reduce energy
consumption and volatile organic compound (VOC) emissions in the BMW Group production network by 45% per
vehicle produced compared to 2006.
Scarcity of energy, as well as climate change and air pollution, are highly relevant topics in China. We
continuously strive to minimise our environmental impacts in these areas by increasing energy efficiency
and decreasing emissions throughout our entire value chain. We thereby increase our operational efficiency
and competitiveness as a business.
Minimising emissions at company locations
We minimise emissions related to our operations as much as possible. This includes CO2
emissions that are generated directly from burning fossil fuels (Scope 1), and indirectly
through our consumption of electricity and heat (Scope 2). Our production locations
generate the majority of these emissions. This is why the strategic area of action we focus
on is increased energy efficiency, leading to CO2 emissions reduction. Additionally, we
strive to continuously reduce VOC emissions per vehicle produced – one of the major
environmental impacts associated with paint processes for automotive companies.
ENVIRONMENTAL PROTECTION
INCREASING OUR ENERGY EFFICIENCY
The energy production in Shenyang, where our production plants are located, is mainly
coal-based. This means that more CO2 and other pollutants are emitted than in regions
with more renewable energy resources. To achieve our CO2 targets, we therefore focus
on improving the energy efficiency of our buildings and production processes.
We rely on state-of-the-art technologies to help us achieve our efficiency targets. For
example, in the paint shop in our Tiexi plant we use an integrated paint process and we
optimise the efficiency of our ventilation systems and implement closed energy cycles.
An innovation implemented in our Dadong plant shows the potential for energy savings: a
steam condensate water recovery system saves approximately 5,700 MWh per year. In
2014, additionally to that we have introduced a new system to recover heat from our VOC
emissions abatement system, which saves 0.02 MWh per unit.
In the face of rising energy prices, these innovations have allowed BMW Brilliance to
reduce our total energy costs and improve our profitability and competitive position.
We use the BMW Group’s building energy consumption standard for sustainable
construction when building new projects and for any building conversions. This standard
establishes principles and concepts for buildings and enables ongoing project monitoring.
The aim is to minimise energy and resource consumption, as well as environmental
impacts, during all phases of a building’s life cycle.
Reducing upstream and downstream emissions
We continually reduce CO2 emissions caused by the use and disposal of our products;
in our supply chain; in transport logistics; and by employees commuting to and from
work (Scope 3). The majority of these emissions are generated during the use of our
products (corporate level, not including upstream fuel). The BMW Group Efficient
Dynamics strategy ( > see Chapter 2) focuses on continually reducing the average fleet
emissions of CO2 per kilometre. Additionally to that, we are continuously increasing the
CO2 efficiency of our transport logistics.
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67
ENERGY CONSUMPTION AND EMISSIONS
ENVIRONMENTAL PROTECTION
IMPROVING OUR ENERGY CONSUMPTION
MEASURING OUR PERFORMANCE
The Planning and Facility Management team has overall responsibility for energy
management, while the Safety and Environment team drives the target-setting process at
the operations level.
We have set targets for energy consumption, per unit produced, for our plants (Tiexi,
Dadong and our Powertrain plant) and for the different production processes (for example
the press shop, body shop, paint shop and assembly). We have installed metering
systems to obtain accurate data on our energy consumption. These systems help us to
closely monitor, target, address irregularities and implement any necessary measures to
ensure our performance is on track.
Members of the Energy Centre of Competence meet regularly with environmental
protection experts from other BMW Group plants. Sharing best practices across the
different markets supports our efforts to raise employee and manager awareness on
how to deal with energy.
Improved energy efficiency and the use of cleaner energy sources have enabled us to
reduce our carbon footprint for every vehicle we produce. In 2014 we achieved a CO2
efficiency of 0.97 tonnes of CO2 per unit produced, an 11.8% reduction when compared
to 2013.
Despite these activities, our consumption of electricity has increased over the last years
( > see Figure 06). This is especially the case for the energy consumption between 2012
and 2013. The main reason for this increase is the start of production in our Tiexi plant
and the expansion of our overall production, while the energy consumption per unit
produced could be reduced from 2013 to 2014.
F.07 Energy consumption per unit produced in all plant locations
in MWh/unit
F.06 Energy consumption in all plant locations
in MWh
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2012
2013
2014
Change to previous year
Total fuel consumption
from non-renewable sources
93,427
115,477
109,895
-4.8%
Total electricity consumption
108,747
165,396
216,674
31.0%
Total heating consumption
110,072
162,627
153,660
-5.5%
Total energy consumption
312,247
443,500
480,229
8.3%
2012
2013
2014
Change to previous year
2.08
2.06
1.67
-18.9%
F.08 CO2 emissions per unit produced at all plant locations
in t/unit
2012
2013
2014
Change to previous year
1.05
1.10
0.97
-11.8%
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ENERGY CONSUMPTION AND EMISSIONS
ENVIRONMENTAL PROTECTION
REDUCING OUR VOC EMISSIONS
MAXIMISING TRUCK LOAD EFFICIENCY
We are committed to reducing our VOC emissions from our production processes to
mitigate any risks and impacts on society. At our Tiexi plant, for example, we introduced
an integrated and waterless painting process which uses water-based paint technology
and a dry-scrubber system to capture overspray paint instead of the traditional water
curtain.
We ensure trucks used for long-distance transportation are filled to capacity. This
enables us to decrease carbon emissions during transportation. Trucks delivering cargo
collected from suppliers in the same area use regional consolidation cargo centres.
Since 2014, we have implemented our Full Truck Load strategy for the inland transportation
of goods from suppliers. Specific trucks now collect cargo from suppliers based on our
production orders. This strategy ensures fewer trucks are used with no container space
wasted. It also eliminates the handling of goods at the regional consolidation centre,
which provides a faster and more efficient service, and consequently reduces carbon
emissions.
The thermal exhaust-air treatment system known as KPR installed in our Dadong plant
leads to a drastic reduction in VOC emissions as compared to previous years. It also sets
a new benchmark standard among BMW Group plants. These measures led at our
production sites to an 87% reduction in VOC emissions per unit produced, from 3.52 kg
of VOC in 2013 to 0.48 kg of VOC in 2014.
F.09 Volatile organic compounds (VOC) per unit produced at all plant locations
in kg/unit
2012
2013
2014
5.66
3.52
0.48
Change to previous year
-86.4%
INCREASING TRANSPORTATION EFFICIENCY
In China, BMW Brilliance produces and supplies premium products and services that
require the transportation of large volumes of goods. Transportation logistics are not
only important to our business success, but also to how we are perceived by society.
We are using more low-carbon modes of transportation and continuously increasing
our logistical efficiency. This strategy reduces overall costs to the business and
minimises our environmental impact.
USING MORE LOW-EMISSIONS TRANSPORTATION
Our low-emissions strategy is twofold. For high-volume suppliers from the Greater
Shanghai area, we are increasingly using short sea shipment main-haul transportation
via Shanghai and Yingkou port. Furthermore, BMW Brilliance has launched a number of
pilot projects to evaluate to what extend standard-fuel truck transportation can be
substituted by liquefied natural gas and/or compressed natural gas technology. By
doing so, we anticipate reducing emissions of CO2, as well as noise and other
emissions.
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FORECAST
In 2015, we plan to implement a steam-to-gas project in the Dadong paint shop, which we anticipate will reduce our
energy consumption by 1,400 MWh per year. Furthermore we will improve the energy efficiency of the new paint shop in
Tiexi to realise its full potential concerning resource efficiency.
We will advance our logistics initiative, particularly with respect to short sea shipments, full truck loading and our natural
gas strategy. Our aim is to increase transportation efficiency and minimise emissions of CO2 and smog pollutants.
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WASTE REDUCTION
3.3 Waste reduction
OUR STRATEGIC DIRECTION
BMW Brilliance contributes to the BMW Group’s target. By 2020, we aim to reduce waste by 45%, per vehicle
produced, compared to 2006. Our goal is to reduce all waste for disposal to a minimum.
One of the major sustainability issues society faces is the global depletion of natural resources. Raw materials are
becoming increasingly scarce, and as demand increases so do business costs. As a result, we engage in
recycling management throughout our product life cycles. We focus on continuously optimising our processes
ENVIRONMENTAL PROTECTION
COLLABORATING WITH OUR VENDORS
We work closely with several vendors on waste disposal to help ensure their performance
complies with national and local laws and regulations. In addition, we conduct duty of care
audits in order to review the management process of each vendor. We conduct such
audits during the vendor selection phase. Furthermore, we audit the hazardous waste
management systems of all our contracted vendors every three years.
CREATING AWARENESS AMONGST OUR EMPLOYEES
To improve the environmental awareness of our employees, we implemented a waste
reduction campaign in 2014. All 3,034 employees from our three plant locations participated
in this campaign, including our technology heads and plant directors. Overall, the campaign
helped improve employee awareness and commitment to environmental protection.
and reducing our waste volumes. This approach allows us to consider waste as a valuable resource, which might
be successfully incorporated back into our production processes.
Our waste management system ensures that we reduce costs as well as environmental impacts. Our system is also
essential to maintaining compliance with the Waste Pollution Prevention and Control Law of China.
MINIMISING PACKAGING WASTE
To reduce waste and to minimise our impact on the environment, we use recycled
packaging for both imported and local parts during our vehicle production processes. We
also use returnable packaging for local parts whenever possible, which has drastically
reduced our packaging waste.
To achieve our objectives, we focus on three main areas of activity along our value chain: reducing our waste; implementing
best practices; and collaborating with our vendors on waste disposal.
MANAGING OUR WASTE
We have implemented the BMW Group’s waste information system – ABIS – to help us
record and reuse the waste we produce. This system was designed for the BMW Group’s
German plants in accordance with that nation’s law on life cycle management. BMW
Brilliance has customised ABIS to meet requirements within China. We apply ABIS to
determine the best disposal method for a particular type of waste.
We also use ABIS to help us document individual waste flows and to categorise waste as
hazardous or non-hazardous, in accordance with the Waste Pollution Prevention and
Control Law and the Hazardous Waste Catalogue of China. During 2014, there were no
incidents of illegal transport or disposal of hazardous waste.
72
73
WASTE REDUCTION
ENVIRONMENTAL PROTECTION
IMPLEMENTING BEST PRACTICES
When we recycle materials or waste, we comply with the same five-step hierarchical model used by the BMW Group, and
as laid down by the European Union as best practice:
1.
Prevention: Where possible, we avoid creating waste in the first place. This is the best solution both in economic and
environmental terms.
2.
Reuse: We reuse any viable waste material immediately. Otherwise, we prepare it for reuse in its original area of application.
3.
Recycle: If reuse is not an option, we recycle the material in such a way that we can reintroduce it to the cycle. It can then
replace primary raw materials.
4.
Recovery: We deliver non-recyclable waste materials to vendors with incineration facilities for heat recovery, whenever it is
technically feasible and legally permitted. Other methods of disposal are also used.
5.
Disposal: Only the small volume of non-recyclable waste that is then left over is earmarked as waste for disposal.
Compared to 2013, the waste for disposal per unit at our Powertrain plant has been reduced. However, despite our efforts the
overall waste production per unit increased between 2013 to 2014. This is mainly due to the reasons described above.
Despite our efforts to reduce our waste to a minimum, the total quantities of waste for disposal and waste for recycling have
increased substantially, as the table below illustrates. This increase is mainly due to the following reasons:
1.
Start of the production in the Tiexi paint shop.
2.
Increase of the total production levels.
3.
Deep cleaning activities of our wastewater treatment and production facilities to ensure effective operation.
4.
Increase of the number of employees, which in turn has increased the amount of waste produced by our staff.
F.10 Total non-hazardous and hazardous waste at BMW Brilliance
F.11 Waste for disposal per unit produced at all plant locations
in t
Hazardous waste for recycling
Hazardous waste for disposal
Total hazardous waste
Non-hazardous waste for recycling
Non-hazardous waste for disposal
Total waste for recycling
Total waste for disposal
Total waste
74
2013
2014
Change in %
1,940
4,060
109.3%
384
1,034
169.3%
2,324
5,097
119.3%
13,113
22,312
70.2%
563
597
6.0%
15,052
26,374
75.2%
947
1,631
72.2%
15,999
28,005
75.0%
in kg/unit
2012
2013
2014
Change to previous year
9.20
4.41
5.67
28.6%
FORECAST
In 2015, we will continue to focus on minimising waste for disposal and devote the necessary resources to recycling
management. We are working closely with local environmental protection authorities, and our paint shop process designer,
to develop a method of recycling limestone for our eco-dry scrubber system in the Tiexi plant paint shop. If successful,
used limestone will not be treated as waste for disposal, but rather as a raw material for cement production.
In the meantime, we will introduce new compact machines for sludge dewatering process, which will contribute to the
waste reduction from wastewater treatment plant.
75
WATER
ENVIRONMENTAL PROTECTION
3.4 Water
TREATING WASTEWATER IN OUR TIEXI PLANT
In 2014, the water consumption per vehicle produced in our Tiexi plant was 1.68 m3. The use of state-of-the-art
technologies will contribute significantly to its water savings. They include:
closed-cycle water systems and the introduction of waterless processes at the paint shops;
OUR STRATEGIC DIRECTION
BMW Brilliance contributes to the BMW Group’s target. By 2020, we will have reduced water consumption and
process wastewater by 45%, per vehicle produced, compared to 2006. Our vision is to achieve wastewater-free
production processes.
Water is becoming increasingly scarce and more valuable as the world’s population and consumption rise. We
understand that careful use of this natural resource is increasingly important today, and for the future. We focus
on reducing our water consumption in order to reduce our business costs and to minimise our impact on the
environment and society.
Our production plants are located in Shenyang, Liaoning Province. Like many other regions of the world, Shenyang is
experiencing challenges related to water shortages. As a result, preserving water is a key objective of our daily business
activities. Currently, we are developing wastewater-free paint application processes for our production lines.
water-saving sanitary fittings that conserve 21,800 m3 per year;
hybrid air-cooling towers rather than evaporative-cooling towers; and
recirculation of demineralised water in the paint shop’s paint-fume capture system and in the washrooms at the Dadong paint shop.
REDUCING WATER CONSUMPTION AT OUR DADONG PLANT
We have introduced water recycling into our newly refurbished car washing system at the Dadong plant. This change has
contributed to reducing our overall water consumption and helped us reduce the consumption per unit produced.
F.12 Water consumption per unit produced at all plant locations
in m3/unit
BMW Brilliance complies with all national and local water laws and regulations, including all control limits. Additionally, the
BMW Group’s water guidelines prescribe how to handle substances that could potentially be hazardous to the water
supply. These guidelines usually exceed local requirements in China.
2012
2013
2014
Change to previous year
2.97
2.72
2.18
-19.9%
MINIMISING OUR WATER USAGE
We aim to reduce our water usage and impacts at all of our
production plants. Our water consumption is mainly related to
the sanitary facilities for our workforce, evaporation from the
cooling towers in our production processes, and the water
use at our paint shops. We therefore focus on continuously
improving our resource efficiency in all of these areas at our
production plants. A management system monitors
consumption targets and levels of our plants. Additionally,
there is a regular exchange of best practices in water
management amongst representatives of all plants within
the BMW network.
F.13 Process wastewater per unit produced at all plant locations
in m3/unit
2012
2013
2014
Change to previous year
0.59
0.50
0.47
-6.0%
FORECAST
In 2015, we will continue to promote and implement water-saving initiatives at our Tiexi plant. In particular, we plan to use
reclaimed water for our on-site gardening activities, which is expected to reduce our water consumption by 1.4 tonnes per
vehicle produced.
76
77
04
SUPPLIER
MANAGEMENT
4.1 Our management approach p. 81
4.2 Minimising supplier risk p. 88
4.3 Utilising supplier opportunities p. 94
OUR MANAGEMENT APPROACH
SUPPLIER MANAGEMENT
How do your products help advance sustainable mobility?
Contemporary Amperex Technology mainly produces electric vehicle lithium-ion batteries, which are
environmentally friendly energy products. They are recyclable, with high safety and reliability. Lithium-ion
batteries are mainly used in electric vehicles, hybrid electric vehicles and as energy storage for power
stations. Our goal is to be a premier solution provider for green energy storage.
How do you integrate sustainability into your everyday operations?
4
SUPPLIER
MANAGEMENT
We have established an energy conservation committee to reduce, for instance, the consumption of water,
electricity and gas. We also adopted a system to recover NMP, an organic compound connected to lithium-ion
batteries. This reduces our volatile organic compound (VOC) emissions.
In addition, we engage in the implementation of second used and recycling program for electric vehicle
batteries and storage batteries respectively. To fulfil our corporate social responsibility, Contemporary
Amperex Technology implemented a code of conduct based on the Electronic Industry Citizenship Coalition
standards, and established a code of conduct committee to ensure the respect for human rights and
employee satisfaction.
How do you cooperate with BMW Brilliance?
Contemporary Amperex Technology has a good relationship with BMW Brilliance in new energy vehicle
development. We have invested heavily in R&D, as well as in the construction of an automotive-level
production plant to meet the high product volumes requested by BMW Brilliance. We are working
towards a long term strategic partnership with BMW Brilliance.
4.1 Our management approach
Our global supply chain network makes a major contribution to value creation, quality and innovation at BMW
Brilliance. Our suppliers play a significant role in helping us to achieve our sustainability goals and in the
sustainable development of society as a whole. As our business grows, so does the complexity of our supply
chain and our potential impact on the environment and society. Our supply chain includes a wide network of
suppliers and sub-suppliers, which presents considerable challenges for us. However, it also provides us
with opportunities to leverage the sustainability performance in our supply chain. We believe that by
Hong Zhang
Environment, Health and Safety Senior Engineer, Contemporary Amperex Technology Ltd.
strengthening this performance we will achieve our long-term goals, deliver a premium experience to our
customers and contribute to sustainable development.
LEVERAGING OUR SUPPLIER RELATIONSHIPS
We work closely with our suppliers to continuously integrate our sustainability
standards with regards to product and production quality, security of supply, price
credibility and innovation. We develop long-term partnerships with our suppliers in
order to leverage our combined potential. By developing shared objectives and targets,
we can continuously improve product quality, logistics processes, production procedures
and sustainability standards. We also discuss the challenges and opportunities we face,
and together develop in-depth analyses on key issues as well as solutions to them.
80
81
OUR MANAGEMENT APPROACH
SUPPLIER MANAGEMENT
Sustainability in our supply chain is incorporated into our overall approach to supplier risk
management. In addition to finance, maintenance and delivery, we have defined three
specific sustainability areas:
Description of BMW Brilliance’s supply chain
BMW Brilliance’s supply chain is complex, multi-tiered and highly diversified as we source
not only huge quantities but also an enormous variety of products, ranging from very
simple parts, like screws, to high technology electronic system components.
Environment, health and safety (EHS)
As we align our sourcing activities more closely with the BMW Group’s global strategy,
we are currently shifting value creation along the supply chain more towards our main
sales market – China. We believe local sourcing provides numerous benefits for our
business and for society. In addition to reducing our currency risks, this approach allows
us to support our operating communities and regions. Local sourcing also improves our
logistics by reducing our transportation footprint, resulting in lower GHG emissions.
Social responsibility
Sub-supplier management
F.14 Supplier risk management (SRM) areas
For example, for several years all local automobiles produced had a localisation rate of more
than 40%. That means we locally source significantly more than 40% of the total costs for
goods and services needed to manufacture vehicles at our Shenyang production plants.
To measure, manage and respond appropriately to
business risks from BMW Brilliance suppliers
By year-end 2014, we worked with 283 suppliers based in mainland China. The location
of our suppliers is spread over 15 provinces. Fifty-three of our suppliers are located in
Liaoning Province, where our plants are also located.
F.15 Total of 283 suppliers separated by regions
Finance
EHS
Social
responsibility
Maintenance
Sub-supplier
management
Delivery
34 Changchun
34
Beijing and Tianjin
With our supplier risk management (SRM) approach we effectively identify and manage
the sustainability risks in our supply chain. With our various supplier initiatives we work
hand-in-hand with our suppliers to build sustainability capacity in our supply chain.
21
Hebei 13
4
9
14
Shandong and Shanxi
43 Jiangsu
Anhui
67
10
1
Sichuan, Mianyang
Shenyang
Yingkou, Liaoyang and Tieling
10 Dalian
15
Hubei and Hunan
Shanghai
Zhejiang
1
Fujian
7
Guangdong and Shenzhen
82
83
OUR MANAGEMENT APPROACH
SUPPLIER MANAGEMENT
OUR SUPPLIER PRINCIPLES AND STANDARDS
F.16 Purchasing volume China
We have developed and implemented several company-specific guidelines, procedures
and policies to ensure our employees are aware of all local environmental, health, safety
and labour laws, as well as legal requirements and international sustainability principles.
These guidelines and policies enable our employees to drive forward the sustainability
goals in our supply chain. For example, in the BMW Brilliance Environment, Health and
Safety Purchasing Management Procedure, we have precisely defined the purpose and
applicability, relevant terms, definitions and abbreviations, responsibilities and
accountabilities, as well as detailed procedures within BMW Brilliance, for the integration
of sustainability criteria into our supply chain.
in billion RMB
30
25
20
15
BMW Brilliance abides by the principles of the UN Global Compact and the ILO. The BMW
Group Supplier Sustainability Standard summarises the BMW Group’s core principles and
standards for our suppliers in accordance with globally recognised principles. It includes a
commitment to environmental and social responsibility, as well as to compliance with all
internationally recognised human rights, local labour and environmental laws.
10
5
0
2012
2013
2014
12.4
17.9
23.9
OUR SUPPLIER CONTRACTS INCLUDE
SUSTAINABILITY CLAUSES
As our supplier network overlaps with the BMW Group’s supplier network, it is an ongoing
process to harmonise contracts and the set-up process for global suppliers used by both of
our organisations.
The parts purchasing volume of local suppliers has increased continuously over the last
three years, contributing more and more to local economic development.
We apply several criteria and considerations to the supplier selection process for China.
One criteria, for example, is the size of automotive parts; that is, by aiming to source all
major large parts from China, we expect to reduce international shipping costs and
related emissions significantly. In most cases, BMW Brilliance works directly with the
manufacturers and without the involvement of contractors, brokers, wholesalers, agents
and others.
84
We adhere to the BMW Group’s International Terms and Conditions for the Purchase of
Production Materials and Automotive Components. These include specific provisions
regarding environmental protection and social responsibility. All of our supplier agreements
contain clauses based on the principles of the UN Global Compact and the ILO. These
provisions require resource-efficient consumption of raw material, energy, water and
chemicals – as well as reduced GHG emissions. Furthermore, there is a ban on child and
forced labour, bribery, as well as requirements for health, safety and environmental
protection. Suppliers are expected to contractually bind their sub-contractors and
suppliers to comply with the sustainability terms of the BMW Group as well, in order to
ensure a comprehensive approach throughout the whole value chain.
85
OUR MANAGEMENT APPROACH
MANAGING OUR SUPPLY CHAIN
All relevant departments at BMW Brilliance, including Research and Development,
Purchasing, Quality Management and Logistics, are jointly responsible for ensuring
sustainable supply chain management. We focus on managing and minimising supplier
risks and leveraging supplier potential, in order to ensure sustainability and continuous
improvement throughout our entire supplier network.
SUPPLIER MANAGEMENT
FORECAST
Ensuring sustainability along our entire supply chain requires joint effort and long-term action. We will continue to
streamline our internal processes and further develop our sustainable supply chain management in order to increase
the positive impact along our supply chain. We will work jointly with the BMW Group to continuously improve sustainable
supplier management. In 2015, we will continue to implement our supplier risk management process and define clear
objectives and key performance indicators.
OUR PROCESSES ALIGN WITH THE BMW GROUP
PROCESSES
The BMW Group’s sustainability risk management process helps ensure that we meet our
sustainability standards. The process consists of a sustainability risk filter specifically
designed for the BMW Group, a voluntary self-assessment questionnaire and
sustainability on-site assessments. Based on these assessments – which include
logistics, quality, technical, cost and sustainability criteria – BMW Brilliance receives a
clear recommendation on supplier choice and selection. As a result, the BMW Group’s
comprehensive sustainability performance and risk assessments are considered as
preconditions of our own supplier management and reviews.
Responsibilities
The SRM process was established by the BMW Brilliance Purchasing and Supplier
Quality Management (QMT) Department and Logistics Quality Management (LQS). QMT
leads the implementation of the cross-functional SRM process. Currently, there are in
total almost 120 people involved in ensuring the implementation of sustainability standards
throughout our supply chain. The QMT Department maintains overall responsibility for the
SRM.
86
87
MINIMISING SUPPLIER RISK
4.2 Minimising supplier risk
SUPPLIER MANAGEMENT
OUR APPROACH TO MINIMISING SUPPLIER RISK
We developed BMW Brilliance’s own SRM process to promote greater corporate
responsibility among our suppliers and help them adapt to BMW Brilliance’s China-specific
circumstances. Following a pilot project in 2013, we officially launched our SRM process in
April 2014, and by year-end we had already assessed 155 suppliers.
OUR STRATEGIC DIRECTION
Our goal is to ensure compliance with the ten UN Global Compact Principles across our whole supply chain. We
plan to achieve this goal in close collaboration with our suppliers.
Additionally, we adapted our internal procedures to manage our suppliers according to the
standards required in the ISO 14001 Environment Management System and in the OHSAS
18001, Occupational Health and Safety Management Standards.
Our supplier risk management process is critical to ensuring that our sustainability standards are met
across our supply chain. We focus on identifying not only product risks, but also sustainability risks related
F.17 Supplier sustainability management process overview
to workers and communities, as well as to environmental impacts. BMW Brilliance is committed to
BMW Group process
addressing these sustainability risks, as we continue to increase the amount of goods and services we
BMW Group process
BMW Brilliance-specific SRM process
procure from local Chinese suppliers. Additionally, sustainable supply chain topics are gaining more public
We focus on understanding and addressing local conditions, as well as any specific industry or related product risks, to
ensure compliance with our sustainability standards. Our priority is to ensure that all of our suppliers maintain the highest
standards of operation and comply with any associated legal requirements.
Because sustainability covers several areas spanning different departments, we have created an internal team responsible
for integrating sustainability into our supply chain. As three major departments are involved – QMT, Purchasing and
Logistics – this team was internally named the “clover-leaf” team. The clover-leaf team continuously reviews our suppliers’
sustainability performance to ensure we are working with the right suppliers. If necessary, we help our current suppliers by
providing support to ensure our sustainability standards are met.
1a
2a
Identify high-risk supplier
locations based on sustainability
risk filter
1b
88
3a
Obtain self-assessment
sustainability questionnaire
2b
Identify and analyse high-risk
suppliers based on media
screening
Supplier risk
3. management on-site
assessment
2. Retrieve
self-assessment
1. Identify risk
attention as stakeholder expectations evolve over time.
Supplier risk management on-site
assessment internally by clover-leaf
team
3b
Develop supplier-specific
corrective action plan
Corrective action plan based on
assessment result
89
MINIMISING SUPPLIER RISK
IDENTIFYING RISKS THROUGH SUSTAINABILITY
RISK FILTER
Through our proprietary sustainability risk filter, we evaluate the environmental, social and
governance risk potential of all existing and new suppliers. The filter takes into account both
location-specific and product-specific risks. This includes, for instance, an assessment of
social risks in certain countries, such as child labour or forced labour.
We also consider environmental risks such as damage to nature, emissions and process
materials containing substances that can be hazardous to health. In such cases, we
assess the production facility of the supplier, rather than its head office. If sub-suppliers
are repeatedly in breach of our sustainability standards, the supply chain is also evaluated
using the sustainability risk filter.
ENSURING SUSTAINABILITY STANDARDS VIA
SELF-ASSESSMENT QUESTIONNAIRES
Based on the results from the risk filter, the next step of our supplier sustainability
management process is to implement the supplier self-assessment via a questionnaire.
BMW Brilliance uses the same questionnaire as the BMW Group. This is an industry-wide
questionnaire based on guiding principles that apply to all original equipment manufacturers
(OEMs). It ensures that minimum standards are complied with throughout the industry. We
have also introduced modular online assessments in order to ensure compliance with BMW
Brilliance-specific and other additional requirements.
SUPPLIER MANAGEMENT
CONDUCTING SUPPLIER ASSESSMENTS
We assess our suppliers according to our SRM process to manage potential risks. In doing so, we ensure our suppliers
respect the standards we require of them. The SRM assessment process is divided in five major steps.
SRM
process
Kick-off meeting
LOP List and action plan
SRM audit
Close LOP and change light
Follow-up with open issues
1. An individual kick-off meeting with each supplier will be held after the supplier sends the supplier check list and self-assessment.
The supplier will be asked to provide check-list-relevant documents, such as business certification, financial statements and EHS
documents (environmental impact assessment, occupational health and safety report and fire inspection certificate report).
2. Clover-leaf team implements on-site assessment, included QMT, Purchasing and Logistics. A written assessment report will be
developed with findings, gaps and areas requiring improvements, and a corresponding corrective action plan.
3. Within 14 working days, offer check list, list of open issues (LOP list) and corrective action plan will be sent to central
management. The findings will be reviewed with management team from Purchasing and QMT Department on a monthly basis.
4. Follow-up the remaining open points with the supplier by clover-leaf team.
5. Close the LOP list, change the traffic light and ensure yearly review.
When new suppliers offer us their services, they must make a clear commitment in their
self-assessment to social standards, such as compliance with international human
rights. Sustainable use of materials, such as secondary aluminium, is also verified at the
“request for proposal” stage. The OEM questionnaire asks whether the environmental
management system in place is in accordance with ISO 14001, and whether recycling is
integrated into the product development phase. It also requests details on the supplier’s
overall approach to recycling. After the proposal has been submitted, these details are
included as key decision-making indicators in the procurement process.
In 2014, we worked with 174 suppliers for the current production out of the total 283 suppliers. The total number of 283
suppliers includes 109 suppliers for future car models where BMW Brilliance parts are not yet produced.
During 2014, we conducted assessments of 155 suppliers covering environment, health and safety issues. At 148
suppliers we covered additionally issues such as anti-corruption. As a result, at least 85% of our current suppliers have
been involved in the SRM process.
90
91
MINIMISING SUPPLIER RISK
SUPPLIER MANAGEMENT
The overall evaluation results of our SRM process are both quantitative measures and qualitative judgements. Suppliers
are given a green, yellow or red traffic light based on their results in the above-mentioned six areas.
F.18 Assessment results impacts on society
140
Green stands for low risk: suppliers are in good standing.
Yellow stands for middle risk: suppliers need to close open points.
120
Red stands for high risk: suppliers need to close open points. On-site reassessment by BMW Brilliance.
100
80
60
40
Meeting BMW Brilliance
requirements
20
0
Beginning 2014
End of 2014
131
137
17
Not meeting BMW Brilliance
requirements
11
Based on the audit results, we provide direction and introduce performance requirements to suppliers based on legal, ISO
14000 and OHSAS 18001 standards. If the results of an audit show non-compliance or potential for improvement, we
work with the supplier to develop a specific corrective action plan and provide assistance with its implementation. We
require follow up on the action plan in a reasonable but timely manner.
FORECAST
In 2014, we rolled out our SRM process, which to date covers at least 85% of our suppliers for the areas of environment, labour
practices and impact on society. We will continue to identify supplier sustainability risks and evaluate their performance,
implement countermeasures and enable continuous improvement. In 2015, we will reassess all the suppliers who were
identified as high-risk during the 2014 audit and all critical suppliers, in order to guide them towards compliance with our
sustainability standards. We aim to cover 90% of our suppliers with the SRM process by the end of 2015.
F.19 Assessment results on environment and labour practices
140
120
100
80
60
40
Meeting BMW Brilliance
requirements
20
0
Beginning 2014
End of 2014
126
146
29
Not meeting BMW Brilliance
requirements
9
As a result of our SRM process, we reduced the number of suppliers with high risks in their environmental and labour
practices from 29 to 9. Furthermore, the number of suppliers with high risk social impact practices was reduced from 17
to 11 suppliers. In both categories, we worked with suppliers to develop and execute appropriate action plans to meet our
requirements. We are currently working with the remaining high-risk suppliers in order to guide and support them to
achieve an acceptable level.
92
93
UTILISING SUPPLIER OPPORTUNITIES
4.3 Utilising supplier opportunities
BMW Brilliance sees long-term and close collaboration with its suppliers as an opportunity to integrate
sustainability into our entire value chain. We harness this potential by promoting employee and supplier
training, by encouraging greater resource efficiency, and by sponsoring supplier education initiatives.
We accomplish this by constantly aligning and improving our internal capacity to drive forward sustainability in our
value chain. We also help our suppliers to become more sustainable and we encourage them to create innovative and
sustainable solutions.
IMPLEMENTING INTERNAL INITIATIVES
SUPPLIER MANAGEMENT
COMMUNICATING OPENLY WITH OUR SUPPLIERS
Since 2013, we have hosted two BMW Brilliance Supplier Days. In 2014, our event
focused on our new projects, bringing together suppliers and management for an open
discussion forum. For new projects, over 100 suppliers from across China took the
opportunity to share their information, expectations and challenges with other members
of our network. We discussed our future business plans and opportunities to work
together, as well as logistics and quality-related matters.
In particular, we discussed the challenge of addressing sustainability issues, such as
environmental and social responsibility. Our goal is to bring our suppliers geographically
closer to the BMW Brilliance plants in order to save logistics and energy costs.
Our Supplier Days have been very successful in building, as well as deepening, important
relationships with key suppliers and our own business partners. We have received
positive feedback from our suppliers and from the government on this initiative.
We deliver key training opportunities to support the implementation of our supplier initiatives:
In 2014, we offered SRM training to all of our clover-leaf team members. The aim was to raise
their awareness of sustainable supply chain management. All supply-chain-related topics are
now covered through this training. We held training sessions in our training centre covering
all six SRM aspects, as well as on-site training for approximately 120 employees.
In 2015, with new projects developing, we will deepen our SRM communication and
cooperation with suppliers and collect suggestions from our clover-leaf team members on
how to further improve our SRM process.
IMPLEMENTING SUPPLIER INITIATIVES
We aim to monitor and guide all of our suppliers towards achieving green traffic lights in all
areas. Suppliers who underperform are reviewed on a monthly basis by QMT Department.
We provide individual coaching and communication support for suppliers to answer their
questions regarding our sustainability requirements or the SRM process in general.
In cases where a supplier does not take effective action to counter their underperformance,
we escalate the issue within BMW Brilliance. We use the assessment results to optimise our
value chain and sourcing stream, as well as to evaluate environmental impacts and human
rights risks, such as child labour.
FORECAST
In 2015, we will continue to integrate sustainability into our supply chain and train our suppliers. We will host regular
events for key suppliers in our network. We will also implement SRM and ongoing training for our finance payment
processes and for safety matters. For suppliers that did not pass our SRM audit process, we will provide training and
guidance on how to achieve our sustainability standards. During the next supplier event, we will introduce a BMW
Brilliance award for innovative sustainability ideas.
Each year, we begin with a re-qualification of all suppliers to ensure its performance meets
our high standards. This approach guarantees there is always a high availability of goodquality parts, combined with a reasonable cost structure and optimised value stream.
Furthermore, the SRM process helps to maintain greater awareness for issues such as
social responsibility, health, safety and the environment.
94
95
05
EMPLOYEES
5.1
5.2
5.3
5.4
Our management approach p. 99
Attractive employer p. 104
Occupational health and safety p. 110
Training and further education p. 114
OUR MANAGEMENT APPROACH
EMPLOYEES
I joined BMW Brilliance at the start of the company in 2003. I personally saw the company grow from one
plant in Dadong to three plants – Dadong, Tiexi and engine plant. And from hundreds of employees to
more than 15,000 employees. Production and sales have also grown by more than ten times over the
past ten years. All these examples are extremely inspiring to me as a loyal member of the BMW Brilliance
family. As a leader in the organisation, I focus on continuous improvement in my responsible business
area, Corporate Finance, and I consistently cultivate and develop the comprehensive talents of my team.
5
EMPLOYEES
I believe all these efforts contribute to the sustainability of the company.
Jennifer Ye
Head of Corporate Finance, BMW Brilliance
5.1 Our management approach
We make every effort to attract and retain the best talent. We offer our employees a variety of benefits, training
opportunities and a high level of job satisfaction. We design and deliver fair and competitive compensation. We also
promote initiatives that foster a better life balance for our employees. We develop and implement programmes to
increase organisational effectiveness and collaborative working environments. All these factors position us as one
of the most attractive employers in the automotive industry. Our increasingly diverse workforce is motivated,
competent and highly effective. This is a core competitive advantage and helps to sustain our business success.
The automotive industry is continuously growing in China. Our challenge is to ensure our employees’ professional career
development matches the fast pace of our business growth. It is essential that our managers and employees develop to
their full potential. However, the demand for talents leads to growing needs of effective talent management and increasing
the cost of managing our people. The Chinese government is expecting improved human resources management. Human
Resources will be a proactive change agent in enhancing our ability to manage diversity, ambiguity and complexity in the
workplace.
INTEGRATING HUMAN RESOURCES IN OUR STARS
STRATEGY
In 2014, a newly shaped corporate vision, goal and strategy road map for BMW Brilliance
was developed: the BMW Brilliance STARS strategy (> see Chapter 1.1). In this, the “A”
stands for Associates, which includes not only the focus on our workforce but also relevant
approaches that enable the company to achieve its vision. For this reason the initiatives of
the “Associates” Star stretches across all five pillars. This demonstrates the important role
our employees play in realising all five of our strategic directions. Ultimately, our Human
Resources initiatives and programmes support BMW Brilliance’s new vision to achieve our
strategic goals through the efforts of our employees.
98
99
OUR MANAGEMENT APPROACH
OBSERVING LABOUR LAW AND HUMAN RIGHTS
Our Human Resources Policy is binding on every employee and we fully comply with
China’s Labour Law, its health and safety laws and relevant regulations that prohibit
forced, compulsory and child labour. We are committed to the ten principles of the UN
Global Compact, including the observance of human rights and fair working conditions, in
order to adhere to the Declaration on Fundamental Principles and Rights at Work by the
International Labour Organization.
Any violation of our Human Resources Guidelines or Legal Compliance Code is filed with
the Human Resources Department and the Compliance Committee. Both our internal and
shareholder audit teams conduct annual audits to ensure full compliance.
EMPLOYEES
F.20 BMW Brilliance workforce
2012
2013
2014
12,381
13,024
15,257
Share of female employees
11%
12%
12%
Share of production employees
79%
75%
73%
Share of employees in
management positions
5%
6%
6%
Workforce at the end of the year
In 2014, the number of employees at BMW Brilliance grew by 17%. The share of female employees remained stable over
the last three years. All employees are employed in permanent and full-time contracts.
Self-employed workers and seasonal variations are not relevant in the context of BMW Brilliance’s work.
MEASURING OUR PROGRESS
At the end of 2014, our total workforce reached 15,257 (figure excludes employees from
dispatched contracts and the Future Talent Programmes). Women comprised 12% of
our total workforce and 26.7% of our management team. Overall, Chinese employees
accounted for 76.3% of our management group. Due to our continuous efforts to develop
a local management team, there was significant growth here; it increased by 27%
compared with 2013.
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101
OUR MANAGEMENT APPROACH
EMPLOYEES
MANAGING OUR HUMAN RESOURCES
Our Senior Vice President of Human Resources is responsible for implementing BMW
Brilliance’s Human Resources strategy and reports to top management on our progress
toward achieving the company’s long-term business direction. The Senior Vice President
is a Board of Management member and reports directly to the CEO.
We also review the performance of our employees on multiple levels. The performance
appraisal criteria are based on our company strategy, BMW Brilliance’s core values and
the job requirements. We receive employee feedback through an employee survey we
conduct every other year. The survey results allow us to derive specific measures to
improve our performance.
In 2007, the BMW Brilliance Labour Union was established to protect employees’ rights
and interests and today represents all local employees. The Labour Union mediates
disputes between employees and the company. Over the past five years, management
and the Labour Union have achieved a more than 50% cumulative increase in the salary
rate. The Labour Union and Board of Management meet annually and decide collectively
which topics will be discussed. These topics include key areas such as health and safety,
compensation, benefits and employee support. Afterwards, a plan with agreed measures
is implemented.
FORECAST
BMW Brilliance Employees’ Representative Congress 2014
The BMW Brilliance Employees’ Representative Congress and Union Members’ Representative
Congress were held successfully in Shenyang. Mr. Olaf Kastner, President and CEO, Dr. Anton
Heiss, Senior Vice President Technology and Manufacturing, Mr. Jack Lei, Senior Vice President
Finance, Mr. Byron Han, Chairman of the BMW Brilliance Labour Union, and government officials
from the Shenyang Labour Union, gathered for the meeting with employee representatives,
reviewing the achievements made in 2014 and looking forward to 2015.
In 2012, we developed a joint Chinese Human Resources strategy in partnership with other BMW China entities. In
2015, we will review our Human Resources strategy in light of the “New Normal” pace of economic development – which
has returned to a more mature but stable pace. We also plan to implement new programmes, or update our current
programmes, related to training, personnel development, competency management and employee assistance. We will
review our recognition and rewards schemes. We will further develop our Human Resources policies regarding China’s
Labour Law, regulations and human rights protection. Finally, we will continue to support human resource strategies
that help boost productivity and nurture profitable ventures.
Byron Han presented a report, covering such issues as organisation building, union activities,
safeguarding employees’ rights, employee care and social responsibilities. He also expressed
sincere appreciation for the excellent work and great support of employees. The new Collective
Contract and 2015 Collective Contract on Labour Remuneration were approved and signed. In
addition, during the meeting, awards were presented to the 2014 Excellent Employee
representatives, Excellent Teams and Shenyang Vocational Skills Competition winners.
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103
ATTRACTIVE EMPLOYER
F.21 The BMW Brilliance Employer Value Proposition
FUL
ESS
CC
U
S
OUR STRATEGIC DIRECTION
BRAND/
PRODUCT
Our goal is to be the most attractive employer in the Chinese automotive industry.
In China, we face talent acquisition challenges due to strong competition in the marketplace and our requirement for higher
skill sets. Our plant is located outside a first-tier city location, which presents another recruiting challenge for our team. We
are addressing this by communicating our Employer Value Proposition and by highlighting the excellent development
opportunities we offer at BMW Brilliance.
G
PIRIN
INS
CULTURE
“HOW?”
TE
CO
a high calibre of talented professionals. It also differentiates us from other automotive companies.
“WHO?”
AN
D
unique opportunities, such as an English-speaking and internationally diverse work environment, helps us attract
PEOPLE
D
AN
to our goal of retaining our employees, who are the most valuable resource of our business. Our ability to provide
P
A
SS
IO
NA
highly skilled employees by providing ongoing training and development opportunities. We believe this is critical
“WHAT?”
APPRECIATI
VE
As a leading employer, we want to attract, recruit and retain the best talents in the marketplace. We develop our
AND SUST
AIN
AB
LE
IVE
AT
OR
AB
LL
5.2 Attractive employer
EMPLOYEES
COMMUNICATING OUR EMPLOYER VALUE
PROPOSITION
Our goal is to be the most attractive employer in the Chinese automotive industry. We have
developed the Employer Value Proposition, which demonstrates our employer-branding
concept. Our value proposition is three-dimensional – it focuses on People, Brand/Product
and Culture. In order to attract the best talents and retain our current employees, our
common creative platform highlights the excellent development opportunities we offer at
BMW Brilliance ( > see Figure 21).
HUMAN RESOURCES AWARDS RECEIVED IN 2014
Best Employer in Auto Industry by Chinahr.com
Best HRM Company in All Industry by 51job.com
Best Campus Employer Brand by 51job.com
Best Employer Top 30 by Dajie.com
In order to maintain our status as an attractive employer, we focus on three main activities: strengthening our employer
brand, introducing the theme “charge passion” to both internal employees and external candidates; offering attractive
employee benefits; and embracing flexible work-time models.
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105
ATTRACTIVE EMPLOYER
EMPLOYEES
Strengthening our employer brand
Embracing flexible work-time
In 2014, we developed our social media recruitment channels. We launched BMW
Brilliance’s official recruitment WeChat account, and gained almost 50,000 followers by
year-end 2014. We also began making use of LinkedIn as a worldwide brand marketing
and recruitment tool.
BMW Brilliance has implemented three different work-time models. This enables us to deal with fluctuations in the
changing market and ensure stable monthly salary payments. We offer three types of work-time contracts:
We inspire our employees to achieve their peak performance by providing them with a
clear vision of our business strategy and goals for the future. In 2014 we introduced
“PASSIONATE and INSPIRING” as the theme for our external recruiting activities. Our
message was, “Passion is all you need to explore what drives you in your life and learning
with BMW”. Simultaneously, we introduced an internal campaign called “Share your
passion about BMW” and encouraged our current employees to express why they like
working at BMW Brilliance.
Work-time accounts for production employees: a work-time account is a tool that facilitates our annual production volume
fluctuations, while guaranteeing stable payment for our production employees. Approximately 75% of employees apply to this
work-time model.
Standard work-time for non-production employees: a standard work-time contract entitles the employee to a 40-hour work
week, which complies with China’s Labour Law. Approximately 7% of employees apply to this work-time model.
Flexible work-time for non-production employees: employees at certain pay-grade levels and above are entitled to flexible
work-time. For some specific roles, however, such as drivers, flexible work time is assigned according to job and functional
requirements. Approximately 18% of employees apply to this work-time model.
Offering attractive employee benefits
We offer a range of additional benefits, including canteen and shuttle bus transportation:
Remuneration
We reward our employees with total remuneration that is above average, parallel with that of
the BMW Group, and aligned with the upper-third of the respective labour market in China. In
addition to a fixed base salary, our employees receive a variable bonus. This includes a bonus
based on company performance and a bonus based on personal performance over the year.
We conduct an annual customised salary survey to ensure our competitiveness as a leading
employer.
Holidays
To foster work-life balance for our employees, we provide statutory annual leave as legally
required and extensive vacation leave like corporate leave – in addition to national statutory
holidays. We also offer maternity and paternity leave, sick leave (including full-pay sick leave),
marriage leave, home visit leave and compassionate leave to satisfy employees’ various
personal needs to the utmost degree.
Flexible benefits
We also provide employees with a highly competitive flexible benefits programme featuring a
full range of insurance options, comprehensive medical coverage and a pension savings plan
that can be customised to best suit employee’s individual needs. Under this programme,
BMW Brilliance grants a total sum of annual flex points to each employee based on his or her
years of service to BMW Brilliance and personal grade. Within the scope of granted total flex
points, employees can choose from a variety of benefits based on individual and family
needs.
Car purchase
We provide car-purchase programmes to all employees.
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107
ATTRACTIVE EMPLOYER
EMPLOYEES
MONITORING ATTRITION RATES
We closely monitor our employee attrition rate every month. BMW Brilliance’s voluntary
attrition rate was 5.65% in 2014. The average automotive industry voluntary attrition rate
in second-tier cities in China is approximately 9%, and in first-tier cities is 10%. The
overall attrition rate (voluntary and non-voluntary) remained stable at 6.8%. BMW
Brilliance continues to succeed in retaining talent and creating high loyalty within its
workforce.
F.22 New employee hires and attrition rate
2012
％2
2013
total
％2
2014
total
total
Rate of new employee hires
44%
new employee hires in Shenyang1
37%
4,608
11%
1,371
19%
2,920
1%
142
1%
113
1%
186
31%
3,813
8%
1,062
16%
2,425
new employee hires 30 – 501
7%
920
3%
405
4%
655
new employee hires > 50
0%
17
0%
17
0%
26
female new employee hires1
4%
446
2%
277
3%
407
male new employee hires1
35%
4,304
9%
1,207
18%
2,699
Attrition rate at BMW Brilliance
6.0%
new employee hires in Beijing1
new employee hires < 301
1
11%
％2
23%
6.8%
6.8%
FORECAST
To cope with the rapidly developing market and diversified talent needs, particularly for the young generation, we will
design and implement more effective and creative approaches to proactively reach high competent talents in the market,
attract and retain them within the company. We plan for instance to enhance and develop social media channels and
targeted recruitment activities. To continuously strengthen our employer branding and the Employer Value Proposition,
we will bring the theme of “charge passion” to life, not only for our internal employees but for our external candidates. In
2015, we will face the challenge of recruiting employees for our new engine plant due to the limited qualified talent
resources in the market.
1. Rate of new employee hires was calculated based on the total workforce.
2. The employee figures on new hires in this table have been rounded-up to avoid decimal places.
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109
OCCUPATIONAL HEALTH AND SAFETY
5.3 Occupational health and safety
EMPLOYEES
F.23 Occupational health and safety at all locations
Accident frequency rate1
OUR STRATEGIC DIRECTION
Absentee rate2
2012
2013
2014
0.32
0.92
0.82
0.80%
0.97%
0.98%
Through the effective management of health and safety risks in the workplace we prevent accidents and
promote well-being. We aim to reduce the accident frequency rate in our business by minimising the risks of
workplace accidents.
We seek to protect our employees’ occupational health and safety by implementing an integrated approach to
our management activities. Our approach assists us in controlling any legal risks associated with health and
1.
Minor (first-aid level) injuries are excluded from the accident frequency rate. The accident frequency rate is calculated by
the number of accidents with one day lost time or more, multiplied by one million hours worked, divided by total working
hours of the month.
2.
Absentee rate only includes sickness leave.
safety. It also helps mitigate absenteeism, or the interruption of business due to health and safety accidents. Our
approach also supports our employees in achieving their best possible performance.
We provide our employees with medical care and health services, we promote healthy lifestyles, and we provide health and
travel advice for expatriates. Our goal is to foster a safety mindset by encouraging our employees to generate and
implement safety improvement ideas for their workplaces. We also conduct regular safety campaigns to raise health and
safety awareness. We also offer health management activities, such as health checks and flu vaccinations, on an annual
basis for employees.
Our Occupational Health and Safety strategy focuses on three main areas: implementing health and safety initiatives;
promoting health checks; and contributing to ergonomic workplaces. As such, we aim to reduce the accident frequency
rate in our business by minimising the risks of workplace accidents. In 2014, the accident frequency rate for BMW
Brilliance was 0.82 per million hours worked. There were no work-related fatal accidents or occupational injuries.
MANAGING OCCUPATIONAL HEALTH AND SAFETY
We act in accordance with the international best-practice guidelines of the BMW Group
Health and Safety Policy and implement health and safety practices in accordance with
relevant Chinese legislation. All production locations of BMW Brilliance are certified
according to the OHSAS 18001 standard by TÜV Rheinland. This helps to control and
reduce our health and safety risks. We have also established company-wide procedural
and working instructions for employees based on the OHSAS 18001 requirements and
best practices within the BMW Group markets.
Our Board of Management assigns a management representative to ensure that health
and safety is effectively implemented and managed across the company. Our system also
adheres to all relevant health and safety laws. We have centralised safety management
within our business and developed key performance indicators to measure our safety
performance.
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111
OCCUPATIONAL HEALTH AND SAFETY
EMPLOYEES
Implementing health and safety initiatives
Contributing to ergonomic workplaces
We are implementing several health and safety initiatives across our business operations.
These include improved ergonomics for office-based staff and an enhanced first-aid
programme at all plant locations. We offer a maternity care programme for pregnant and
breastfeeding employees. Our managers are encouraged to lead by example by investing
in their own health. We provide health and safety training to all new employees. By
year-end 2014, 14,754 employees – including the new employees – had received this
training.
In 2014, we conducted 1,104 ergonomic assessments at our production sites to improve overall workplace design. At
non-production sites, we conducted office ergonomic assessments for 677 employees to improve the ergonomics within
the office environment. Employees are encouraged to raise ideas for ergonomic improvement at their workstations. To
date, we have made improvements to 26 workstations based on input from our employees.
Contributing to employee health through our CARE Programme
1.
Employee Assistance Programme
This programme is designed to provide confidential counselling services to all employees and their immediate family members.
In addition to the 24/7 counselling service, various other support services are included, such as:
tools for building mental resilience;
tools for dealing with traumatic life events;
tools for dealing with stressful life events;
stop smoking programmes; and
access to a well-being website that caters to both women’s and men’s health issues.
Confidential, face to face counselling is provided to employees and their immediate family members, which supports our
employees in the identification and resolution of issues both at work and at home.
We believe that our Employee Assistance Programme contributes to the well-being and the quality of life of all our employees
and their families.
2.
Young mothers’ rooms
“Let every employee work in a healthy, comfortable, safe and happy environment” is the motto of BMW Brilliance’s
people-oriented culture. Young mothers’ rooms were specially designed for our female employees who are breastfeeding.
The rooms were designed to offer good hygiene practices, comfort and privacy, as well as other additional features such as
health promotion video displays, hand disinfection and air purifying units. The young mothers’ rooms are located in all existing
plant locations and will be included in future locations.
FORECAST
Promoting health checks
In 2014, 11,656 or 95% of our employees participated in the annual health check
programme which is offered to all employees and not just to employees with potential
exposure within the workplace (as defined within the Occupational Health legislation). The
content of the health check is not limited to the Occupational Health legal requirements; it
is a comprehensive health screening that enables early diagnosis and treatment of any
medical condition. The annual health check initiative supports employees and their
families in making informed decisions about managing their current health status. In
addition, annual seasonal flu vaccinations are offered to all employees. During the winter
season in 2014, 6,839 employees, or 46%, participated in this campaign.
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We will continue to implement our Employee Assistance Programme as part of our Occupational Health and Safety
strategy in 2015. Our employees’ physical and mental health will both be of increasing importance. Our planned
health initiatives and campaigns in 2015 will focus on: building mental resilience to cope with stressful life events;
raising awareness and educating our employees about the importance of nutrition, making healthy food choices and
developing healthy eating habits; and smoking cessation programmes to help smokers quit in order to mitigate the
health risks associated with this habit.
The Physical Assessment and Rehabilitation Centre will form an integral part of the health services we offer employees.
Our goal is to take a holistic approach to the overall well-being of our employees. We will continue to implement the
ergonomic assessment initiative for both office and production areas. We will also launch a new hearing conservation
programme in 2015.
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TRAINING AND FURTHER EDUCATION
5.4 Training and further education
EMPLOYEES
F.24 Training man-days organised by the Human Resources Department increased year-on-year
50,000
40,000
STRATEGIC DIRECTION
With training and clear leadership, the potential of our people is developed and realised.
30,000
20,000
10,000
0
The education and continuous training of our employees is fundamental to the sustainable success of our
company. In order to keep pace with technological advancements, we provide advanced learning and
development opportunities to suit the individual strengths of our trainees, skilled workers and leaders. In the
2012
2013
2014
27,004
40,742
46,967
coming years, there will be an ongoing increase in the demand for well-trained workers. This is particularly relevant
in Shenyang, where potential future talents often leave university with little or no practical work experience.
To meet the demand for new technology, particularly in research and development and at our metal foundries, we must
identify talent at an early stage and develop it through the right education programmes. We believe strategic university
partnerships can help us provide the right training to develop passionate employees who are able to deliver top-quality
performance in the workplace.
In 2014, the Human Resources Department organised an average number of training days per employee of 3.4 days. The
employee training satisfaction rate has improved to above 93% ( > see Figure 25 and 26).
F.25 Average training days
As an important step in the implementation of our talent development approach, BMW Brilliance launched in 2014 “The
Academy”, bringing together all training departments of BMW subsidiaries in China. The Academy’s vision is to enable our
sustainable business success by advancing the careers of our leaders and employees through a passion for excellence.
TRAINING OUR EMPLOYEES
We focus on continuous improvement by measuring and evaluating our training and
education performance each year. In 2014, the number of employee training days
organised by our Human Resources Department increased in comparison to the 2013
training programme ( > see Figure 24).
2013
2014
Average days of further training per employee1
3.2
3.4
Employees in production
1.9
1.3
Employees in non-production
7.1
9.7
Employees in management positions
5.4
6.7
Employees in non-management positions
3.1
3.4
1. One man-day corresponds to 8 h. Due to a refinement of the calculation method of training man-days, the data for 2013
was adjusted.
Despite a strong increase in employee headcount, training man-days increased by 6%. The number of trainings
conducted increased by 27%. The share of actual training participants increased by 14%. BMW Brilliance provided
more courses varying from soft skill training to research and development training.
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115
TRAINING AND FURTHER EDUCATION
EMPLOYEES
In 2014, we focused on leadership at entry levels of the company. We developed a
programme for leaders in our production areas, giving them the skills they need to
become leaders as well as managers.
F.26 Training satisfaction rate year-on-year
95.0%
Developing future talents
As part of the BMW Group’s global strategy to develop young people, we provide
programmes for vocational education, production apprenticeships and specialist
traineeships. In 2014, approximately 350 young people took part in the ongoing,
practice-oriented programmes we offer at the doctoral, bachelor, master and vocational
education levels.
90.0%
85.0%
2012
2013
2014
92.0%
91.0%
93.0%
Our strategy for training and further education focuses on three areas: further qualifying our employees; developing future
talent; and tailoring our training services.
Qualifying our employees and strengthening our leadership culture
The “Journey to Excellence (JtE)” programme is driving the transformation of BMW
Brilliance through end-to-end process optimisation and mindset change towards
cross-departmental collaboration and continuous improvement. In 2014, we delivered
26 sessions to our employees in “Do it the JtE Way”. This training is tailor-made and is
designed to deepen participants’ understanding of the JtE programme. Our goal is to
encourage employees to overcome obstacles to change. We want to enhance the
collaborative mindset of participants and help them positively influence others by taking
ownership of the optimisation process in order to achieve business excellence. An
evaluation conducted for one of the JtE programmes with the 32 JtE teams revealed
that their awareness level of the sourcing process increased by 31%. Participants said
the business exercise was well organised and that they would recommend it to their
colleagues.
We recently launched a new doctoral programme, known as ProMotion, with four
students, who are studying research and development, production planning, and process
optimisation. Through their practical thesis work, these young talents are transforming
their academic values into productivity improvements. To foster the young spirit of
innovation, we plan to commit to a further six doctorate student placements in 2015.
We offer other future talent programmes, including Fastlane China and Production
Management Trainee. Students get to experience practical work life at the same time as
completing their qualifications at their chosen university. The goal is to develop strong
talent for leadership positions in the future.
In 2014, the first group of 45 apprentices graduated from the New Vocational Education
Programme and became BMW Brilliance employees. We established a 1,000-square-metre area for practical training, which provides the apprentices with room and equipment to
practice, according to the standards of the German dual education system.
During the year, we recruited 130 new students to the programme, which transitioned
from a two-year into a standard three-year programme. Since then, it has been fully
aligned with the BMW Group standard.
We also recognise that leadership development is a critical factor of our ongoing
success. We believe that by focusing on the strengths of each individual employee, we
can create a solid foundation for a company culture based on our Five Elements: Open,
Trust, Care, Inspire and Go Beyond. These Five Elements represent the values and
leadership style we want to nurture in BMW Brilliance.
We provide workshops and dialogue platforms for our leadership teams, as well as specific
programmes for new and mature leaders. One new area of focus in our customised
dialogue platform is “intercultural competence and healthy leadership”. The aim is to
encourage our employees to improve their understanding of each other and to consider
their own mental resilience as an important factor for individual success.
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TRAINING AND FURTHER EDUCATION
EMPLOYEES
Tailoring our training services
FORECAST
We tailor our advanced learning and development services to suit the individual strengths of our trainees, skilled
workers and leaders.
The philosophy of The Academy is based on a 70:20:10 formula. We foster a culture of life-long learning, where 70% of
learning comes from on-the-job practice, 20% from peer feedback, and 10% from classroom training. The Academy will
develop new quality-assurance measurement tools to track trainer quality and its impact on student learning. This will help
us identify where further action is required.
Our long-term training planning process: We have introduced this process to develop a closer link to BMW Brilliance’s
business. We also use it to enhance individual personnel development and performance management. Line managers are
expected to plan each employee’s development for the next 18 months based on the observed work. As a result, the
quality of training and related budget planning has been greatly improved.
Internal trainer programme: This programme is designed to create a learning culture within BMW Brilliance. We focus
on providing support to our internal trainers by enhancing our training delivery competency. In 2014, 74 internal trainers
from our technical departments were qualified.
Online English training programme: We are committed to improving the overall English competency of our employees.
In 2014, a total of 1,154 people studied English online for 46,208 hours through our online English training programme.
BMW driving training: We offer a one day driver-training programme to Beijing sales-related employees. This is part of a
BMW Group initiative to give our sales team hands-on experience in driving a BMW vehicle to better understand customer
experiences needs.
BMW Group Brand and Customer Institute: Powerful brands create powerful values. It is our employees, as brand
ambassadors, however, that bring them to life. In 2014, the new BMW Group Brand and Customer Institute was
launched to provide our employees with a deep understanding of our brands, customers and global markets. In 2014,
193 colleagues from the Sales Department joined this programme.
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119
06
CORPORATE
CITIZENSHIP
6.1 Our management approach p. 123
6.2 Corporate citizenship p. 126
OUR MANAGEMENT APPROACH
CORPORATE CITIZENSHIP
How have the Corporate Citizenship activities of BMW Brilliance contributed to tackling societal
challenges in China?
From the 11-year BMW Children’s Traffic Safety Education programme, to the nine-year BMW China Culture
Journey, and from the establishment of 56 BMW JOY Homes with BMW dealers, to the ecological protection
in Yushu in partnership with NGOs, we have implemented a series of innovative and effective corporate social
responsibility programmes in China that have brought us closer to the community and delivered tangible
benefits to society.
6
CORPORATE
CITIZENSHIP
How do you ensure the sustainability of your programmes?
The approach of our long-term engagement is to mobilise and engage the general public in contributing to
sustainable development while focusing on our core competencies and fulfilling our own social responsibility.
By doing so, we create sustainable impacts.
What are your priorities for the future?
We will continuously pursue initiatives that make a difference to people’s lives, our community and the
environment we share, so we can achieve sustainable development together with China. To achieve this,
we will expand our programmes and increase our engagement.
6.1 Our management approach
Corporate Citizenship is integral to our vision. At BMW Brilliance we are working across all BMW entities in
China to ensure that we fulfil our social responsibilities. We believe we can inspire our stakeholders to join us
Molly Yang
Vice President of Public Relations & Corporate Social Responsibility
in making a positive contribution to society and in fostering sustainable development in China.
China, like other countries in the world, is confronting a variety of globalisation challenges, such as urbanisation, climate
change and its subsequent effects on the environment, resource shortages and other economic factors, more stringent
government policies and regulations, and evolving customer behaviour and expectations.
Our Corporate Citizenship strategy enables us to address these challenges and trends in partnership with Chinese
society, and this strategy helps us to become even more powerful as both an automotive manufacturer and a corporate
citizen. Through our long-term commitment, we have brought together our stakeholders – BMW Brilliance employees,
dealers, customers and the public – to one open platform in order to fulfil their own social responsibilities and achieve
self-realisation.
OUR CORPORATE CITIZENSHIP PRINCIPLES
Our Corporate Citizenship programmes follow three key principles. First, we believe our
programmes should be systematic and customised to ensure maximum results. Second,
we support programmes that focus on long-term development needs and, therefore,
warrant our long-term financial commitment. Third, we target programmes that will
receive broad support and participation from both our internal and external stakeholders
including our employees, dealers, customers, the media and the general public.
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123
OUR MANAGEMENT APPROACH
CORPORATE CITIZENSHIP
TAKING RESPONSIBILITY
OUR AWARD-WINNING CORPORATE CITIZENSHIP PROGRAMMES
We aim to reinforce BMW Brilliance as a responsible corporate citizen by taking a
professional, efficient and humanistic approach to caring for people, the community and
the environment.
We have received several awards for our charitable programmes, which are part of our overall Corporate Citizenship
strategy, including:
THE 4TH CHINA CSR PRIZE OF EXCELLENCE for BMW Yushu Care Initiative by China Philanthropy Times (December 2014).
We have customised our Corporate Citizenship strategy to reflect the realities of Chinese
society. Our areas of strategic focus – Resources, Intercultural Innovation and Social
Inclusion, and Education – enable us to implement social initiatives that align with our
industry, while further promoting sustainable development in China.
2014 FASHION MODEL AWARD for BMW Yushu Care Initiative by Huanqiu.com in “2014 Global Fashion Festival of the Year”
(December 2014).
We have also received many awards and honours for our Corporate Citizenship programmes, including:
The foundation of BMW China’s Corporate Citizenship Platform is the CCF-BMW Warm
Heart Fund, which supports a wide variety of programmes and partners. We encourage
our employees, dealers and customer representatives to contribute to our corporate
citizenship efforts. The Warm Heart Fund is focused on delivering results and remains
committed to operating in a collaborative, transparent and sustainable manner.
THE BEST CORPORATE CITIZENSHIP OF CHINA by the 21st Century Business Herald (November 2014).
MOST RESPONSIBLE ENTERPRISE IN NORTHEAST CHINA by China Beijing All-media Automobile Alliance (December 2014).
2014 AWARD FOR THE BEST ENTERPRISE IN FULFILLING CSR by Outlook Weekly (December 2014).
By the end of 2014, the BMW Warm Heart Fund had donated a total of RMB 96 million. To
date, more than 250 BMW dealers and 65,000 customers have participated in a variety of
public campaigns. This has resulted in more than 91,000 people benefiting from BMW
Brilliance’s Corporate Citizenship engagement.
2014 AWARD FOR MOST INFLUENTIAL AUTOMAKER IN CSR by International Finance News (December 2014).
PUBLIC WELFARE AWARD OF 2013 for BMW China Culture Journey by Beijing Times (June 2014).
AWARD FOR EXCELLENT CASE ON CORPORATE SOCIAL RESPONSIBILITY for BMW China Culture Journey by the
Southern Weekly (July 2014).
F.27 BMW China’s Corporate Citizenship strategy and structure
EXCELLENT CASES on China’s automotive industry’s corporate social responsibility for BMW China Culture Journey by China
Association of Automobile Culture (July 2014).
BMW CHINA
Corporate Citizenship
2014 CSR CHINESE CULTURE AWARD for BMW China Culture Journey by National Humanity History (December 2014).
Intercultural Innovation
and Social Inclusion
Resources
Goal: Contribute to the sustainable
development of China by promoting
innovations for resource efficiency
and sustainable resource use with
social benefits.
Goal: Promote cross-culture
understanding and social inclusion,
reduce social inequality and
safeguard the social stability and
prosperity through innovative
activities outside and inside the
corporation.
5S dealership
Yushu ecological environment
protection
BMW China Culture Journey
BMW JOY Home
BMW JOY Future
BMW Yushu Care Initiative
Education
Goal: Provide engaging road safety
and general safety education.
BMW Children’s Traffic Safety
Education
BMW Brilliance Quality Education
Open Course
BMW Warm Heart Fund
BMW China Corporate Citizenship Platforms
With Fund support, project initiation and process partners engagement
THE SUPER EXCELLENT INFLUENCE PRIZE FOR PUBLIC WELFARE STARS IN PROTECTING CHILDREN’S TRAFFIC
SAFETY for BMW Children’s Traffic Safety Education Programme by Parents Magazine (December 2014).
SPECIAL PRIZE FOR THE MOST RESPONSIBLE CORPORATE PUBLIC WELFARE PROGRAMME for BMW Children’s
Traffic Safety Education Programme by China Newsweek (December 2014).
FORECAST
Currently, we have eight programmes dedicated to Corporate Citizenship. In the future, BMW Brilliance will further
upgrade its flagship programmes by integrating more resources and innovative activities, as well as by increasing our
public engagement.
Our Vice President of Public Relations and Corporate Social Responsibility is responsible for implementing BMW
Brilliance’s Corporate Citizenship strategy and reports to senior management on the progress made toward our
long-term business direction. Additionally, our Board of Management provides crucial support and guidance to many of
our Corporate Social Responsibility initiatives, and makes any necessary planning and resource decisions.
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CORPORATE CITIZENSHIP
6.2 Corporate citizenship
CORPORATE CITIZENSHIP
We support a number of programmes dedicated to intercultural innovation and social
inclusion, including:
PROTECTING CHINA’S CULTURAL HERITAGE
OUR STRATEGIC DIRECTION
Due to our core areas of expertise, we believe we have a leading role to play in the area of corporate citizenship.
China’s economic development and environmental status is transforming into what is being called the “New
Normal” condition. In this condition, “speed” is no longer the only main performance indicator. It is also about
achieving higher-quality products and sustainable economic development. In order to address the diversified
One of our long-term commitments is to protect traditional Chinese culture and to promote
cross-cultural understanding and social inclusion. For the past eight years, we have
sponsored BMW China Culture Journey, which has explored and protected intangible
cultural heritage sites across the country.
During that time, BMW China Culture Journey has travelled over 17,000 kilometres, visited
six state-level cultural ecological protection zones and explored more than 210 intangible
cultural heritage sites in 21 provinces. In total, we have contributed RMB 8 million to 77
intangible cultural items and for research into sites in urgent need of protection.
social issues under the New Normal, and to achieve sustainable development in China, we endeavour to act
as a responsible corporate citizen and to help drive progress on social issues. At BMW Brilliance, we effectively
integrate innovation and corporate social responsibility. We continue to work with our partners on preserving
traditional Chinese culture, on supporting disadvantaged children and students in our society, and on
contributing to environmental protection.
In 2014, the Chinese National Academy of Arts (China National Centre for Safeguarding
Intangible Cultural Heritage) conferred its “China Intangible Cultural Heritage Protection
Contribution Award” on BMW. We are the first, and to date only, automotive company in
China to win this prestigious national award.
EMERGENCY AID AND LONG-TERM SUPPORT TO DISASTER–AFFECTED AREAS
Our Corporate Citizenship strategy focuses on three main areas:
Intercultural innovation and social inclusion
We promote intercultural innovation and social inclusion on a global basis. Our goal is to reduce social inequality and to safeguard
social stability and prosperity in China. We are committed to preserving traditional Chinese culture.
Since launching the emergency disaster aid programme – known as BMW Yushu Care
Initiative – in 2010, BMW Warm Heart Fund has arranged eight visits to Yushu, the site of
a devastating earthquake in April 2010. In total, by year-end 2014 we had distributed
RMB 6.9 million of winter supplies and educational materials in the region. Additionally, in
2014, we helped 15,000 students and local herdsmen.
Education
As a part of our commitment to sustainable development, we support the education of future generations. Our goal is to
promote social progress and harmony, as well as to achieve collective prosperity.
Resources
Environmental responsibility is integral to our business. We contribute to initiatives that increase the efficient and sustainable use
of natural resources for the benefit of society and our local communities. We want to contribute to the sustainable development
of our surrounding communities by increasing resource efficiency and sustainable resource use.
SUPPORTING DISADVANTAGED CHILDREN AND STUDENTS
“BMW JOY Home” Children Care Programme is the first long-term public aid programme
aimed at providing assistance and emotional care to disadvantaged children. Established
in 2011 by the BMW Warm Heart Fund, BMW JOY Homes, to date, has built 56 homes in
28 provinces, benefiting more than 50,000 children.
In September 2014 BMW, in conjunction with the China Welfare Institute of Beijing
Normal University and Beijing Normal University Education Foundation, launched the
“BMW JOY Home Rural Education Promotion Programme” in Beijing. The programme is
committed to developing rural education, and exploring effective training models and
evaluation systems for rural teachers. Over the next three years, it will provide services to
nearly 2,000 teachers at BMW JOY Homes.
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127
CORPORATE CITIZENSHIP
CORPORATE CITIZENSHIP
PROVIDING OPPORTUNITIES TO STUDENTS FROM LOW INCOME FAMILIES
Launched in 2008, the “BMW JOY Future” Student Grant Programme provides financial
assistance, education opportunities and spiritual support to outstanding students from
financially challenged families. To date, we have provided more than RMB 15.6 million in
aid to nearly 6,200 students. In 2014, the BMW Warm Heart Fund distributed student-aid
funds totalling approximately RMB 4 million to almost 1,000 outstanding college students
from 14 provinces to assist them in completing their college studies.
Students are selected under a transparent and comprehensive process designed by the
China Charity Federation (CCF), a partner of the BMW Warm Heart Fund.
BMW Warm Heart Fund works with CCF to define selection standards, working areas and
the number of students selected for the programme.
1. CCF proposes a list of students who should receive support, which aligns with local
government and local school lists.
2. Local CCF organisations implement home visits to ensure the students are within the
programme standards.
3. BMW Warm Heart Fund’s authorised third party revisits students’ homes to confirm
adherence to the programme standards.
PROVIDING QUALITY MANAGEMENT EDUCATION
We also support a wide variety of educational programmes, including:
ENSURING CHILDREN’S ROAD SAFETY
BMW Children’s Traffic Safety Education celebrated its 10th anniversary in 2014. It is our
most lasting corporate citizenship and social responsibility programme in China. It is also
the first-ever children’s safety education initiative introduced by the automotive industry.
Since 2005, BMW Children’s Traffic Safety Education has reached 63 cities and benefited
370,000 children.
The 10th anniversary celebration and grand opening ceremony featured the theme of
“Safeguarding Children for Ten Years”. In addition to the courses we provide every year,
we added quality education into the training camp we offer, enabling children to engage
directly with automotive technology. In response to new trends in education, we also
developed an application software.
In 2013, we officially launched our BMW Brilliance Quality Education Open Course. The
course centres on the production philosophy “Quality Comes First”. We help middle and
primary school students to better understand the importance of quality safety by teaching
lessons through fun activities and by setting up a “Unity of Knowledge and Practice”
extracurricular study platform.
We also invited students to visit our Tiexi plant, allowing them to learn about automotive
manufacturing and quality inspections at first hand, and extending their education beyond
the classroom.
In 2014, we upgraded the course materials to ensure the content was more comprehensive
and easy to understand. We also developed and distributed new quality education
supplementary textbooks to students.
Since 2010, we have worked with the Ministry of Education to publish and distribute
290,000 BMW traffic safety textbooks for schoolchildren. We also shared this material
with “BMW JOY Home” classrooms in 2014.
BMW Children’s Traffic Safety Education continues to innovate and explore in the field of
safety education. This education model leverages diverse channels of communication to
help popularise and transform the “study of knowledge” into a “change of habits”. As an
unprecedented long-term public awareness programme, the training camp vividly reflects
our desire to contribute to Chinese society.
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129
CORPORATE CITIZENSHIP
CORPORATE CITIZENSHIP
ENCOURAGING STUDENT INNOVATION
FORECAST
“BMW Day” has been held at Shanghai Tongji University for nine consecutive years and
attended by nearly 200,000 college students. This event is aimed at inspiring young
people to develop innovative ideas and to have the courage to pursue their dreams. In
the future, we will further our cooperation with China’s higher education schools and
contribute to the cultivation of talent.
We have accomplished the goals we set for BMW Brilliance in 2014, by taking a long-term and systematic approach to
developing our Corporate Citizenship strategy and programmes. In 2015, we plan to maintain our leadership position
and further engage with the public, as we advance our innovative CSR programmes.
Finally, we support initiatives that increase the efficient and sustainable use of natural
resources for the benefit of society and our local communities, including:
SUPPORTING ECOLOGICAL PROTECTION IN YUSHU
In July 2014, BMW Warm Heart Fund extended the term of its cooperative relationship
with Shanshui Conservation Centre to 2016. The programme includes a series of
studies of the grasslands’ ecological system, a community protection practice and
training for local conservation workers, as well as a plan to actively explore and establish
a community protection and resource management model that fits local needs and
promotes Yushu’s long-term development.
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131
07
APPENDIX
7.1 About this report p. 134
7.2 UN Global Compact Index p. 136
7.3 GRI Content Index p. 146
ABOUT THIS REPORT
7
APPENDIX
APPENDIX
UN Global Compact – Communication on Progress
BMW Brilliance committed to the ten principles of the UN Global Compact in 2014, and is
now continuously working on integrating sustainability criteria into all corporate processes.
The company actively promotes compliance with internationally adopted standards and
regulations in the fields of human rights, occupational standards, environmental protection
and the fight against corruption. In this report, BMW Brilliance reports in the Sustainability
Report on progress achieved in complying with these principles.
Third-party verification
External auditors and experts audited indicators from the areas of environmental protection
and occupational health and safety in accordance with ISO 14001 and OHSAS 18001.
7.1 About this report
The BMW Brilliance Sustainability Report 2014 has been published to provide stakeholders with comprehensive
information about the company’s sustainability ambitions and the progress made. Topics have been selected and
weighted in accordance with the findings of a systematic materiality process.
It is based on the requirements of the UN Global Compact Communication on Progress and has been developed in
accordance with GRI G4 core. The report is published in English and Chinese. The sustainability report is available on
https://www.unglobalcompact.org/what-is-gc/participants/30051-BMW-Brilliance-Automotive-Ltd-
Reporting period
The reporting period is the 2014 calendar year. This report covers the period 1 January
2014 to 31 December 2014. It is BMW Brilliance’s second Sustainability Report. The last
BMW Brilliance Sustainability Report was released in October 2014 covering the financial
year 2013. The next Sustainability Report will be published in mid-2016. In future, BMW
Brilliance plans to report on a yearly basis.
Reporting scope
The sustainability figures include the following production and operation sites of BMW
Brilliance: the Shenyang plants as well as the branch company in Beijing and regional
offices. The data focuses primarily on BMW Brilliance. Joint initiatives with BMW China
Automotive Trading Ltd. are included in the areas of customer relationship management
and corporate citizenship. In the reporting period there were no significant changes with
regards to the size of BMW Brilliance.
134
135
UN GLOBAL COMPACT INDEX
APPENDIX
Dealers:
7.2 UN Global Compact Index
Fostering sustainability among dealers
REFERENCES
The following table lists examples of established BMW Brilliance guidelines and management systems that support
compliance with the ten UN Global Compact principles as well as progress made.
BMW Brilliance:
> 1.1
> 5.1
Principle 1: Support and Respect the Protection of Internationally Proclaimed Human Rights
Suppliers:
> 1.1
> 4.1-4.3
COMPANY GUIDELINES AND MANAGEMENT SYSTEMS
Dealers:
BMW Brilliance:
Commitment to the UN Global Compact Initiative
> 1.1
> 2.3
Commitment to the ILO Declaration on Fundamental Principles and Rights at Work
Human Resource Guidelines and Employee Handbook
BMW Brilliance SpeakUP Line
BMW Brilliance Legal Compliance Code
Principle 2: Make Sure There Is No Complicity in Human Rights Abuses
Suppliers:
BMW Group Supplier Sustainability Standard
Purchasing conditions and sustainability contract clauses
Supplier management
COMPANY GUIDELINES AND MANAGEMENT SYSTEMS
BMW Brilliance:
> See principle 1
SUBSTANTIAL PROGRESS MADE
Suppliers:
BMW Brilliance:
> See principle 1
Protecting human rights related to our employees
Protecting human rights related to the communities and the environment we live and work in
Observing labour law and human rights
Suppliers:
Protecting human rights related to our suppliers and business partners
SUBSTANTIAL PROGRESS MADE
BMW Brilliance:
> See principle 1
Protecting human rights related to the communities and the environment we live and work in - including human rights clauses in
supplier contracts
Supplier risk management (SRM) process
Yearly supplier audits to ensure suppliers are not complicit in human rights abuses and to avoid child labour
136
Suppliers:
> See principle 1
137
UN GLOBAL COMPACT INDEX
REFERENCES
APPENDIX
Principle 4: Elimination of All Forms of Forced and Compulsory Labour
> See principle 1
COMPANY GUIDELINES AND MANAGEMENT SYSTEMS
BMW Brilliance:
Principle 3: Uphold the Freedom of Association and Recognition of the Right to Collective Bargaining
> See principle 1
Human Resource Guidelines in compliance with China’s Labour Law and relevant regulations in relation to forbidding forced,
compulsory and child labour
COMPANY GUIDELINES AND MANAGEMENT SYSTEMS
Suppliers:
BMW Brilliance:
> See principle 1
Human Resources Policy consisting of Associates Handbook and Human Resources Guidelines which is binding for every employee,
including health, safety and environment practices, handling of hazardous substances as well as anti-discrimination and anti-harassment
measures
> See principle 1
SUBSTANTIAL PROGRESS MADE
BMW Brilliance:
Suppliers:
> See principle 1
> See principle 1
Suppliers:
SUBSTANTIAL PROGRESS MADE
> See principle 1
BMW Brilliance:
The Labour Union covers all local employees
REFERENCES
Over the past five years, management and the Labour Union have achieved a more than 50% cumulative increase in the salary rate
> See principle 1
Suppliers:
> See principle 1
Principle 5: Effective Abolition of Child Labour
REFERENCES
> See principle 1
COMPANY GUIDELINES AND MANAGEMENT SYSTEMS
BMW Brilliance:
> See principle 1
138
139
UN GLOBAL COMPACT INDEX
Suppliers:
> See principle 1
APPENDIX
REFERENCES
> See principle 1
SUBSTANTIAL PROGRESS MADE
BMW Brilliance:
> See principle 1
Principle 7: Support Precautionary Approach to Environmental Challenges
Suppliers:
> See principle 1
COMPANY GUIDELINES AND MANAGEMENT SYSTEMS
BMW Brilliance:
REFERENCES
ISO 14001 certification for all plant locations
BMW Group internal Centres of Competence (CoCs) for water, process wastewater, energy, waste for disposal and VOC emissions
> See principle 1
Consideration of environmental impacts in investment decisions
Application of Cleaner Production Strategy of the United Nations Environment Programme (UNEP)
Implementation of the BMW Group Efficient Dynamics strategy
Strategy to develop and promote electric vehicles
Principle 6: Elimination of Discrimination in Respect to Employment and Occupation
Certification of all products according to ISO 14020, ISO 14024 and the Chinese standard HJ 2532
Guidelines on interior emissions in vehicles
COMPANY GUIDELINES AND MANAGEMENT SYSTEMS
Suppliers:
> See principle 1
BMW Brilliance:
> See principle 1
Dealers:
5S certification of dealers including ecological criteria
Suppliers:
> See principle 1
SUBSTANTIAL PROGRESS MADE
BMW Brilliance:
> See principle 1
Suppliers:
> See principle 1
140
141
UN GLOBAL COMPACT INDEX
SUBSTANTIAL PROGRESS MADE
APPENDIX
Principle 8: Undertake Initiatives to Promote Greater Environmental Responsibility
BMW Brilliance:
Contributing to BMW Group environmental goals: achieve a 45% reduction in energy consumption as well as water,
wastewater, waste and solvents per vehicle produced between 2006 and 2020
Reduction of energy consumption per vehicle produced by 18.9%
Reduction of CO2 emissions per vehicle produced by 11.8%
Reduction of water consumption per vehicle produced by 19.9%
COMPANY GUIDELINES AND MANAGEMENT SYSTEMS
BMW Brilliance:
> See principle 7
Reduction of process wastewater per vehicle produced by 6.0%
Increase of waste for disposal per vehicle produced by 28.6%
Suppliers:
Reduction of VOC emissions per vehicle produced by 86.4%
> See principle 7
Reduction of the BMW Brilliance corporate average fuel consumption to 7.06 litres of petrol per 100 kilometres
Dealers:
Suppliers:
> See principle 7
Supplier risk management (SRM) process
Dealers:
SUBSTANTIAL PROGRESS MADE
Promote the 5S dealer concept by encouraging the voluntary involvement of authorised dealers nationwide to
improve sustainability standards
BMW Brilliance:
Fostering sustainability among dealers
> See principle 7
Suppliers:
REFERENCES
> See principle 7
BMW Brilliance:
> 2.1 – 2.4
Dealers:
> 3.1 – 3.4
> See principle 7
Suppliers:
REFERENCES
> 4.1 – 4.3
> See principle 7
Dealers:
> 2.3
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UN GLOBAL COMPACT INDEX
Principle 9: Development and Diffusion of Environmentally Friendly Technologies
APPENDIX
Principle 10: Work against Corruption in all Its Forms, Including Extortion and Bribery
COMPANY GUIDELINES AND MANAGEMENT SYSTEMS
COMPANY GUIDELINES AND MANAGEMENT SYSTEMS
BMW Brilliance:
BMW Brilliance:
> See principle 7
BMW Brilliance Legal Compliance Code
Corruption Prevention Policy
Suppliers:
Anti-Fraud Policy
> See principle 7
Fraud Response Procedure
BMW Brilliance Compliance Management System
SUBSTANTIAL PROGRESS MADE
BMW Brilliance:
Suppliers:
> See principle 1
Saving fuel and reducing emissions
SUBSTANTIAL PROGRESS MADE
REFERENCES
> See principle 7
BMW Brilliance:
BMW Brilliance Compliance Committee (BCC) established
Data Privacy Protection Committee established
Managers and employees trained on Compliance
REFERENCES
BMW Brilliance:
> 1.3
144
145
GRI CONTENT INDEX FOR “IN ACCORDANCE” – CORE
APPENDIX
7.3 GRI Content Index for “In accordance”
– Core
The following table lists the GRI Standard Disclosures and their location in BMW Brilliance’s report.
GENERAL STANDARD DISCLOSURES
General Standard Disclosure
G4-24
pp. 24 – 29
-
G4-25
p. 24
-
G4-26
pp. 24 – 29
-
G4-27
p. 20
-
G4-28
p. 134
-
G4-29
p. 134
-
G4-30
p. 134
-
G4-31
p. 150
-
G4-32
pp. 134, 146 – 147
-
G4-33
p. 135
-
p. 19
-
pp. 30 – 39
-
REPORT PROFILE
Page
External Assurance
STRATEGY AND ANALYSIS
G4-1
GENERAL STANDARD DISCLOSURES
pp. 1, 4 – 5
-
ORGANISATIONAL PROFILE
G4-3
p. 150
-
G4-4
p. 9
-
G4-5
p. 150
-
G4-6
p. 6
-
G4-7
p. 9
-
G4-8
p. 9
-
G4-9
pp. 8 – 9
-
G4-10
p. 101
-
G4-11
p. 102
-
G4-12
pp. 83 – 84
-
G4-13
p. 134
-
G4-14
pp. 15 – 23
-
G4-15
p. 15
-
G4-16
p. 28
-
G4-17
p. 134
-
G4-18
pp. 20 – 21
-
G4-19
p. 21
-
G4-20
p. 21
-
G4-21
p. 21
-
G4-22
Effects of restatements are – if necessary – described as
footnotes in the respective graphs.
No significant changes.
-
GOVERNANCE
G4-34
ETHICS AND INTEGRITY
G4-56
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
G4-23
146
-
147
GRI CONTENT INDEX FOR “IN ACCORDANCE” – CORE
APPENDIX
SPECIFIC STANDARD DISCLOSURES
Material Aspects
Energy
Emissions
Products and Services
Omissions
External Assurance
DMA: pp. 54 – 56 – 59, 66 – 71
G4-EN3: p. 68
-
-
DMA: pp. 54 – 59, 66 – 71
G4-EN17: pp. 54 – 55
-
-
DMA: pp. 43 – 45, 54 – 59
G4-EN27: pp. 43 – 45, 54 – 59
-
-
Employment
DMA: pp. 104 – 109
G4-LA1: p. 108
Total number of new employee hires not reported.
Total number of employee turnover, as well as breakdown by age group, gender and region, not reported.
-
Occupational Health
and Safety
DMA: pp. 110 – 113
G4-LA6: p. 111
Data is not reported by gender. Occupational diseases
rate (ODR), lost day rate (LDR) and injuries/
occupational diseases for independent contractors
working on-site are not reported. There are no
occupational disease cases in the company. We
monitor accident frequency rate instead of LDR.
-
Training and Education
DMA: pp. 114 – 119
G4-LA9: p. 115
Training days by gender not reported.
-
Anti-corruption
DMA: pp. 30 – 39
G4-SO4: pp. 37 – 38
Total number of employees and number of business
partners that the policies and procedures have been
communicated are not reported.
-
Public Policy
148
DMA and Indicators
DMA: pp. 27 – 28
G4-SO6: BMW does not support
political parties, their representatives or
candidates for office with financial or
in-kind political contributions.
-
-
Anti-competitive
Behaviour
DMA: pp. 30 – 39
G4-SO7: In 2014 there were no legal
actions regarding anti-competitive
behaviour and violations of anti-trust and
monopoly legislations.
-
-
Customer Health
and Safety
DMA: pp. 46 – 49
G4-PR1: p. 48
-
-
Supplier Environmental
Assessment
DMA: pp. 88 – 93
G4-EN33: pp. 91 – 93
-
-
Supplier Assessment
for Labour Practices
DMA: pp. 88 – 93
G4-LA15: pp. 91 – 93
-
-
Supplier Assessment
for Impacts on Society
DMA: pp. 88 – 93
G4-SO10: pp. 91 – 93
-
-
149
WE LOOK FORWARD TO HEARING FROM YOU
FURTHER INFORMATION AND PUBLICATIONS ARE AVAILABLE AT:
https://www.unglobalcompact.org/what-is-gc/participants/30051-BMW-Brilliance-Automotive-LtdContact for questions regarding this report:
BMW Brilliance Automotive Ltd. Beijing Branch
25th Floor, Tower B, Gateway Plaza
18 Xiaguangli, North Road East Third Ring
Chaoyang District
Beijing 100027, P.R. China
Tel.: +86 (0)10 8455 7000
Report published by:
BMW Brilliance Automotive Ltd.
14 Shanzuizi Road
Dadong District
Shenyang 110044
Liaoning Province, P.R. China
Tel.: +86 (0)24 8455 6000
BMW Brilliance on the Internet:
www.bmw-brilliance.cn
www.zinoro.com.cn
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